$1.25 Billion In Aid Coming To Small Businesses

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Vice President Kamala Harris recently told reporters that the Biden administration will be distributing $1.25 billion to hundreds of community leaders who will then disperse the funds to small businesses and disadvantaged business owners in an effort to assist economic recovery.

The $1.25 billion in funding will be spread between more than 860 community development financial institutions across the United States, reports the Associated Press. Community development financial institutions, or CDFIs, provide loans to small businesses and others who have a hard time receiving loans from major banks.

Harris said traditional banks have sometimes failed to "understand the vision of women, small business owners, small business owners of color, and small business owners who serve low income communities."

She said CDFIs aid those communities mentioned, which eventually benefits the nation as a whole.

Treasury Secretary Janet Yellen also spoke at the event with Harris. Yellen said the CDFI funds being distributed by the Biden administration will help to combat systematic racism and improve the economy so that it's of benefit to all Americans.