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Investments

9682

Portfolio Exits

721

About Paycheck Protection Program

The Paycheck Protection Program (often referred to as PPP) is a loan administered by the U.S. Small Business Administration designed to provide a direct incentive for small businesses to keep their workers on the payroll. SBA will forgive loans if all employees are kept on the payroll for eight weeks and the money is used for payroll, rent, mortgage interest, or utilities.The Paycheck Protection Program was established by the CARES Act and was implemented by the Small Business Administration with support from the Department of the Treasury. It was started in response to the coronavirus epidemic in the USA in 2020.

Paycheck Protection Program Headquarters Location

409 3rd Street SW

Washington, DC, 20416,

United States

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Research containing Paycheck Protection Program

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CB Insights Intelligence Analysts have mentioned Paycheck Protection Program in 2 CB Insights research briefs, most recently on Aug 27, 2020.

Latest Paycheck Protection Program News

CDFIs are starting to flex their post-pandemic clout

Aug 16, 2022

8 Min Read REGISTER NOW WASHINGTON —  The federal government's response to the COVID-19 pandemic catapulted a niche sector of specialized community development lenders to a new level of prominence in American finance. Now, as the industry matures into a burgeoning political force in the nation's capital, some of the sector's leaders are eying ambitious policy changes in coming years that could transform the sector's long-term trajectory, including a push for a historic increase in government funding, new tax incentive programs and even a national charter for nonbank community lenders. Senator Mark Warner, D-Va., left, speaks to Sen. Mike Crapo, R-Idaho, prior to a hearing in the Senate Finance Committee. Warner and Crapo recently announced the creation of a bipartisan Community Development Financial Institution Caucus in Congress, signaling the growing influence of the once-marginal industry sector. Bloomberg News Community development financial institutions — better known as CDFIs — are a set of Treasury Department-certified lenders designed to do a certain amount of business in underserved communities across the U.S., often in the form of small business and affordable housing loans. They include banks, credit unions, loan funds and venture capital firms. As a designation created during the Clinton administration, well over a thousand CDFIs now play an integral role in the federal government's effort to direct greater amounts of private capital to poor communities, often in coordination with larger banks under the Community Reinvestment Act . But a surge of pandemic-era emergency funding marked a watershed moment for the industry. Among CDFI banks alone, the sector's assets grew by more than 60% between the first quarters of 2019 and 2022, from $61.1 billion to $100.2 billion, according to data compiled by the Community Development Bankers Association. Now, CDFIs and their advocates aim to leave a more enduring mark on the financial system, as well as supporters in Congress who could secure policy reforms to make it happen. "The CDFI industry was a kind of a below-the-radar group of lenders before the Paycheck Protection Program, but that brought a lot of attention to our specialized brand of lending and brought a lot of benefits," said Jennifer A. Vasiloff, chief external affairs officer at the CDFI network and advocacy organization Opportunity Finance Network. "While we have certainly been happy to see an increased interest in sort of a CDFI solution to poverty and historic discrimination and economic inequality — all the fantastic work that we do — it's still kind of a drop in the bucket," Vasiloff added. "We are by no means done. "  Earlier this month, Democratic Sen. Mark Warner of Virginia announced the launch of a new bipartisan caucus for CDFIs , which will be co-chaired by Warner and Republican Sen. Mike Crapo of Idaho. The group's existence is a testament to how far the CDFI sector has come since the Clinton administration and will be a focal point of advocates' efforts in the years to come. Vasiloff and other sources in the CDFI industry said that the role CDFIs played in a series of emergency programs introduced by the federal government after the onset of the COVID-19 pandemic — especially under the Paycheck Protection Program — was a catalyst driving the sector's increased visibility in Washington. "I don't think that this caucus could have come together even as recently as two or three years ago," Vasiloff said. CDFIs' community-driven missions have long garnered support from Democrats in Congress, but Vasiloff said the institutions also have robust backing from Republicans because they utilize private institutions to support entrepreneurship and wealth generation in underserved areas. "CDFI Fund appropriations and other legislative initiatives around CDFIs have always enjoyed strong Republican support, because I think it's a perfect kind of private-public sector strategy, and that is easier for Republicans to get behind," Vasiloff said. "But the kind of visibility and credibility we earned as an industry with the Paycheck Protection Program has encouraged Republican senators in particular to be willing to put their names on something like this caucus." Jeannine Jacokes, CEO of the Community Development Bankers Association, who has worked in and around the CDFI sector since its inception during the Clinton years, said that the transformation was remarkable given where the industry started just three decades ago. "At the very beginning, I will say the industry really had virtually no experience in terms of public policy advocacy," said Jacokes. "Fast forward 30 years, and we have a caucus — that is a mind-blowing thing, because way back when, CDFIs were very much grassroots organizations. Many didn't get a lot of government funding from any source whatsoever. "  Sustaining and expanding that government funding remains top of mind for the sector's policy advocates in the years ahead. The industry's foremost source of funding has long been the Treasury's CDFI Fund, which currently distributes a limited amount of capital to applicants every year. "The CDFI Fund's annual appropriation is the number one pot that everyone gets their money out of," Jacokes said. "Even though the industry has grown many fold, the amount of appropriations is woefully lacking. "   For the 2022 fiscal year, Congress appropriated $295 million for the CDFI Fund; a $25 million increase from FY 2021, but far short of what the CDFI industry has asked for in recent years. In April, several financial trade groups —  including the Opportunity Finance Network, CDBA, American Bankers Association and the Independent Community Bankers of America — urged Congress to appropriate as much as $1 billion to the CDFI Fund, calling the sum "modest relative to the size and scope of the CDFI industry." Members of the CDFI industry say the sector's need for capital goes beyond meeting the demand they see for loans and other services; several representatives interviewed by American Banker emphasized that CDFIs also need some dedicated funding to improve their technological capacity and ultimately scale the amount of work the sector can accomplish. "While great resources have been provided already, we are going to continue to need much more long term capital — that is, patient capital — to give us the ability to invest in our systems and our operating capacity, so that we can become more efficient and more effective as an organization so that we can deliver capital at scale," said Luz Urrutia, CEO of Accion Opportunity Fund.

Paycheck Protection Program Investments

9,682 Investments

Paycheck Protection Program has made 9,682 investments. Their latest investment was in Roof Maxx as part of their Loan on March 3, 2021.

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Paycheck Protection Program Investments Activity

investments chart

Date

Round

Company

Amount

New?

Co-Investors

Sources

3/12/2021

Loan

Roof Maxx

$0.17M

Yes

1

2/8/2021

Loan - II

Ficto

$0.18M

No

1

2/3/2021

Loan

levAR

$0.05M

Yes

1

2/1/2021

Loan - II

Subscribe to see more

$99M

Subscribe to see more

10

1/25/2021

Loan - II

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$99M

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10

Date

3/12/2021

2/8/2021

2/3/2021

2/1/2021

1/25/2021

Round

Loan

Loan - II

Loan

Loan - II

Loan - II

Company

Roof Maxx

Ficto

levAR

Subscribe to see more

Subscribe to see more

Amount

$0.17M

$0.18M

$0.05M

$99M

$99M

New?

Yes

No

Yes

Subscribe to see more

Subscribe to see more

Co-Investors

Sources

1

1

1

10

10

Paycheck Protection Program Portfolio Exits

721 Portfolio Exits

Paycheck Protection Program has 721 portfolio exits. Their latest portfolio exit was IRISYS on August 13, 2021.

Date

Exit

Companies

Valuation
Valuations are submitted by companies, mined from state filings or news, provided by VentureSource, or based on a comparables valuation model.

Acquirer

Sources

8/13/2021

Acquired

IRISYS

$99M

8/13/2021

Acquired

Risk Consulting Partners

$99M

8/13/2021

Acquired

Hubb

$99M

8/12/2021

Acquired

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$99M

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0

8/11/2021

Acquired

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$99M

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0

Date

8/13/2021

8/13/2021

8/13/2021

8/12/2021

8/11/2021

Exit

Acquired

Acquired

Acquired

Acquired

Acquired

Companies

IRISYS
Risk Consulting Partners
Hubb

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Valuation

$99M

$99M

$99M

$99M

$99M

Acquirer

Subscribe to see more

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Sources

0

0

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