(Reuters) - The Federal Reserve expanded access to a small business lending program beyond banks on Thursday, allowing a broader set of institutions to participate.
All lenders approved by the Small Business Administration to participate in the Paycheck Protection Program, including non-depository financial institutions, will now have access to a liquidity facility with the Fed.
The move should make it easier for Community Development Financial Institutions and other small lenders to fund loans issued through the small business lending program, which targets small firms taking a hit from the coronavirus outbreak.
Some community groups say expanding access to CDFI lenders can help improve reach to minority-owned businesses, which are less likely to turn to large banks for loans.
Reporting by Jonnelle Marte and Ann Saphir; Editing by Tom Brown