BUILDING ON SUCCESS AND TRUST
As a trusted mission-driven nonprofit and U.S. Treasury-certified Community Development Financial Institution (CDFI), Prestamos CDFI has promoted economic and community development through lending since its origins in the 1980s. Most recently, we played an integral role nationally in supporting small businesses during the COVID-19 pandemic, providing over 400,000 Paycheck Protection Program (PPP) loans to underserved communities in crisis.

In December 2022, a U.S. House of Representatives subcommittee published a report on financial technology companies (fintechs) who participated in issuing PPP loans during the pandemic. The report mentions Prestamos and highlighted our mission-focused efforts to assist underserved borrowers in minority communities. In helping as many small businesses as we could, we did so within a framework of established SBA guidelines and rules. Applying SBA regulations to prevent fraud, Prestamos denied many PPP loan applications that did not meet the eligibility requirements. In fact, our compliance program resulted in a 57% denial rate.

We appreciate that Congress recognizes the important role of nonprofit lenders in supporting small businesses nationwide through the PPP. There have been headlines regarding this report and an SBA review of PPP lenders, and it is important to note:

Prestamos providing PPP loans to small businesses is a meaningful and impactful success story of the program. Both the Subcommittee and SBA have noted Prestamos’ positive role in providing PPP loans.As a non-profit CDFI, Prestamos worked to make PPP loans accessible to communities of color and other underserved communities who en masse were either ignored or denied initial pandemic-related economic relief assistance from mainstream banks and lenders.

Almost all of our PPP loans went to small businesses and sole proprietors, providing expedited emergency support to help keep doors open that otherwise would have been shuttered. The vast majority (77.8%) of our PPP loans went to minority-owned businesses. We were able to help hairstylists, barbers, real estate agents, ride-share drivers, custodians, landscapers, construction contractors, musicians, artists, street vendors, and other small business owners and operators. Our average loan amount was $15,000.

Prestamos supports efforts to identify and prevent fraud and enhance the integrity of SBA’s lending programs. We proactively are collaborating with Congress and with the SBA to finish out the PPP as Congress intended and to improve SBA lending programs in the future. And we are proud of the round-the-clock work our Prestamos employees did to get funds to those Congress intended to serve. Prestamos remains committed to serving these hardest-hit communities and stamping out any fraud, waste, or abuse that prevents small businesses and their employees from receiving the benefits intended to keep them employed and contributing to our national economy.

In coordination with the SBA, Prestamos is working to enhance the role of nonprofit, community-based lenders. Prestamos is steadfast in its mission to help small businesses in low-income areas not just to survive, but to grow and thrive, strengthening all aspects and all members of our communities.

FREQUENTLY ASKED QUESTIONS

Did Prestamos follow fraud prevention guidelines for the PPP?

Yes. We followed SBA’s instructions to identify and mitigate PPP fraud. Our own compliance program actually resulted in the denial of 57% of the initial PPP loan applications we received. Under these guidelines, Prestamos was able to have a big impact through the PPP, and we provided over 400,000 SBA PPP loans. We primarily funded lower-income borrowers that were sole proprietors and independent contractors and were overlooked by traditional lenders. This aided them in keeping their businesses open and in retaining their workforce. We support any effort to identify and correct fraud and protect the integrity of SBA’s loan program, which is why we are contributing to those efforts by the Subcommittee and the SBA.

Will inquiries into the PPP program prevent Prestamos from continuing to serve communities?

Absolutely not. Non-profit, community-based lenders play a critical role in reaching those in need, and we remain dedicated to that mission. We are still working with SBA to finish out the PPP as Congress intended, and we also continue to work with SBA through the Community Advantage Loan Program, the Investment in Micro-Entrepreneurs (PRIME) Program, and the Microloan Program. We will continue to partner with the SBA to improve SBA lending programs in the future, and we stand ready to keep serving those hardest-hit communities.

How is Prestamos helping to enhance SBA Program integrity and prevent fraud?

We support every effort to identify and prevent fraud in SBA lending programs, which is why we contributed to those efforts led by Congress and will continue to be a partner to SBA in strengthening program integrity.

What is the status of Prestamos with the SBA?

Prestamos was praised by federal leaders for successfully getting PPP loans to small businesses in marginalized communities. Prestamos remains in good standing with the SBA and continues to partner with the SBA in service of its mission.

LOAN OPPORTUNITIES

Prestamos CDFI has other loan programs available to small businesses. The CDFI offers a range of lending products with loans up to $50,000 in our microloan program and larger loans above this up to $1MM. We can customize a loan to meet your small business or community facility needs.

Learn More

Small Business Administration
Paycheck Protection Program (PPP)

Apply Now

PPP Eligibility

First Time/First Draw Borrowers:

500 or fewer employees
For-Profit and Non-Profi 501(c)(3) Organizations
501(c)(6) organizations with 150 or fewer employees (excluding lobbying organizations)
Self Employed Individuals with Schedule C positive net income on Line 31

Second Time/Second Draw Borrowers:

Can demonstrate a 25 percent revenue loss during one quarter of 2020 compared to the same quarter of 2019
300 or fewer employees
For-Profit and Non-Profi 501(c)(3) Organizations
501(c)(6) organizations with 150 or fewer employees (excluding lobbying organizations)
Self Employed Individuals with Schedule C positive net income on Line 31

About The Program

Prestamos CDFI is accepting the Small Business Administration (SBA) Paycheck Protection Program (PPP) applications nationwide until the program closes; either when funds run out, or, on March 31, 2021. This funding is to incentivize small business owners to keep their staff on the payroll as we all persist through the (Coronavirus) COVID-19 pandemic.

If the PPP funds are used for at least 60% payroll purposes (Wages, Health Benefits, Retirement Benefits, State Unemployment Taxes) along with up to 40% of other eligible expenses (Rent/Lease, Utilities, Fixed Interest, PPE, Cloud Computing, Etc), the PPP may be forgiven up to 100% by The SBA.

Once an application is submitted, it can take 1-2 weeks to be funded into your bank account based on how quickly you complete your application and provide the necessary documents and The SBA approval time.

Complete and submit the contact form below. Once we receive your information, a member of the Prestamos team will contact you with further instructions to guide you through the application process.

For More Specifics on The PPP, please watch our introduction and eligibility video here:

Watch PPP Overview Video