i want to understand the cdfi lending guidelines and not in ex excruciating detail. just top level. >> to dive deep into the weeds would be the task of the working group. you know, the essential way you guard against that kind of rink is you have rigorous under writing standards that are vetted and are publicly -- they're available to the public for review. and the way we design the bank, i mean, you have to anticipate that some loans you make will not be repaid. our model could withstand very, very heavy losses. and still remain solvent. the trade off is it grows slower and it has a lower rate of return but the benefit is the financial commitment has a robust and very strong buffer and i think we did modeling and our bank could withstand a great depression-like scenario. our model would have done very well in it just has so much cushion. >> what is the typical loan size to a cdfi. >> i don't know the context of that question this is a wholesale lending environment and it's a cdfi. so we talked about over the first few years there being roughly $80 million in funds c

that's another difference between cdfi and commercial ndsf bank. smaller loans under $250,000, il was all credit score and automatic credit.. to the small alk businesses, and they wouldn't even know the bankers. to go to a branch is more for retail. so, this is a big difference because small businesses really do not know what they need. you have to help them to structure the deals. so, with cdfi talk them to puta structure the deals on the laws based on the needs. so, we put a whole lot of and emphasis on technical assistance before they receive the loan ask. definitely not allowed in a commercial bank of conflict. we are doing at a a mitigat for the credit and they go in understandingg the types p loans and products that we are offering. it's a big difference and i'm happy with cdfi because i have e passion for doing that and working with people and not just numbers or telephone. so, the isis a big difference and we need capital.e m we need grand capital to helporl to provide more, the funding that's not available. so, definitely like doing pro bo

i want to understand the cdfi lending guidelines and not in ex excruciating detail.op level. >> to dive deep into the weeds would be the task of the working group. you know, the essential way you guard against that kind of rink is you have rigorous under writing standards that are vetted and are publicly -- they're available to the public for review. and the way we design the bank, i mean, you have to anticipate that some loans you make will not be repaid. our model could withstand very, very heavy losses. and still remain solvent. the trade off is it grows slower and it has a lower rate of return but the benefit is the financial commitment has a robust and very strong buffer and i think we did modeling and our bank could withstand a great depression-like scenario. our model would have done very well in it just has so much cushion. >> what is the typical loan size to a cdfi. >> i don't know the context of that question this is a wholesale lending environment and it's a cdfi. so we talked about over the first few years there being roughly $80 million in funds contribu

there's a big difference and i'm happy for the cdfi because i have a passion for doing that and working with people and not just numbers or telephones. this is a big difference and we need grand capitol to help provide more. the funding that's not available so definitely there during services like this. during the assessment capitol, we need it to power overhead to provide more thank you for asking. >> thank you. ranking member about seeing whether we can provide some of that capitol for the non- think cdfi. >> that would be great. thank you. >> i believe it's senator sinema joining us by phone from arizona. >> thank you to ranking member to me for holding this hearing and to our witnesses for joining us today. arizona small businesses in our economy, before this pandemic hits, small businesses in arizona employed 1.6 million workers, more than half of the state workforce and created $71.3 billion in annual wages and for those employees but today is a different story. small businesses struggling to keep their doors open. among those hardest hit are arizona's local and independent restau

president, this is only one cdfi out of hundreds nationwide. the story will be repeated, those that have been left out. the committee has also been urged to extend the deadline by the business community. on march 15, more than 90 chamber of commerces trade groups and business organizations sent a letter urging extension, and they said nearly one year into the covid-19 pandemic, the continued liquidity challenges of small business sectors are acute. mr. president, it's clear that there is still an overwhelming need for p.p.p. loans, which is why the p.p.p. extension act passed the house of representatives by a 415-3 vote. this is bipartisan. the bill that we're talking about is sponsored by senator collins and senator shaheen and i are also on that bill. the good news is that the resources are there. we have been informed by the s.b.a. that the extension of the deadline could work within the funds that have already been made available by congress. the money is there. this is not the first time we have done this. i must remind my colleagues that

we're oerptsing and the programs and the programs that will invest in cdfis and minority depository institutions. we have variety of programs and would look forward to working with you to see how we can use them to address this problem >> thank you >> the gentleman from michigan is recognized for five minutes >> thank you i'm going to be trying to move through a couple of quick things secretary yellen, congratulations your new position i look forward to continuing to work with you. i have to read you part of an e-mail i received from a cpa constituent of mine and this ex echoes what mr. sherman had to say. extending the filing day of the 2020 filing returns was not an option it was a necessity of the stuff being thrown at us making changes in march, question mark. really question mark it will take software developers to get this into the software correctly. can you imagine e imagine the amount of incorrect correspondence the irs will create and how much we'll have to deal with straightening this out for them because they also can't get their systems changed correctly that quickly it's going to b

we are operating at treasury these programs that will invest in cdfi's and minority depository institutions, but we have a variety of programs and will look forward to working with you to see how we can use the room to address this problem. rep. waters: your time has expired, thank you. the gentleman from michigan is recognized for five minutes. >> thank you, madam chair, and i will try to move through a couple of quick things. one, secretary yellen, congratulations on your new position and i look forward to continue to work with you, but i have to redo part of an email that i received from a cpa constituents of mine, and this echoes what mr. sherman had to say. extending the filing data was not an option, it was a necessity because of all the things being thrown at us this year. making changes to the 2020 income rules in march? really? it will take software developers two weeks to get this into the software correctly. can you imagine the correspondence the irs is going to create as a result of this and how we are going to have to straighten this out for them because they cannot get their s

i look at -- and you all know at cdfi, before he was able to modernize his banking infrastructure, hesix months. i look at mckeshon in india, they digitized -- >> let me ask you on that point, robert, how does your plan, because you're a result man. how does your plan help get more black americans online so they can be accessible to the digital world? >> it is critical in this lattimer plan we get public/private partnerships to provide affordable broadband internet to all citizens. and all our citizens in particular, we are disproportionately affected. you have 400 million indians up on 4g services and they're paying about $2 to $3 for a 4g plan. here the average is $40 to $50 and we have left out 40 million americans or so. it's important we have a public/private partnership with enabling our communities to have access and affordable access, and we need to figure out some subsidy program for communities that don't have the capacity to pay for it today. they shouldn't have to miss a meal to actually get broadband access. part of the brilliance of this lattimer plan that marc has put t

the other thing you can look at is something called the cdfi which is -- go to the sba website to finde smallest businesses get financing. that's what they do, whether it is part of a pandemic or part of the ppp or not. don't just stop at the bank where you're used to going. >> there are two things that have changed that i think is important for people to understand. if you have a felony conviction, you are now able to access the loans. and if you were a student who had defaulted or had defaulted on student debt, you are now not prevented from accessing these ppp loans. >> yeah. you know, super important, i think, both philosophically and in practice. we know student debt is a big barrier to people starting their own companies. and frankly, if someone's business goes under, they're not going to be able to pay back their student debt, right? so we want -- there's a good reason to allow those people to apply for ppp. for people incarcerated. when your three years is over, the idea is not that you get randomly published in perpetuity, the idea is you've paid your penance and you're done.

in turn, these cdfis and mdis can lend that capital out, helping people buy homes and start businesses in places that the financial services sector traditionally hasn't served well. then, there are the families i spoke about, the ones struggling to keep a roof over their head and food on the table. the american rescue plan provides more than $30 billion to help renters and homeowners at risk of losing their homes. and we're making sure that assistance flows as efficiently as possible. for instance, the previous administration put in place rules that required tenants and landlords to provide quite a bit of documentation to get rental assistance, including detailed statements about their income. but some people don't have access to those documents. we're cutting through the red tape for them, while still taking responsible steps to prevent fraud and abuse. and of course, we've been sending direct payments to americans, a lot of americans. as of last week, we had issued over 90 million payments. and all this is just a fraction of treasury's work. there are so many more relief programs, in

in turn, the cdfi's and mdi's can land that capital out, helping people buy homes and start businesses in places the financial services sector traditionally hasn't served well. then there is the famines and spoke about, the one struggling to keep a roof over their head and food on the table. the american rescue plan provides more than $30 billion to help renters and homeowners at risk of losing their homes, and we are making sure that assistance flows as sufficiently as possible. for instance, the previous administration put in place rules that required tenants and landlords to provide quite a bit of documentation to get rental assistance, including detailed statements about their income. but some people don't have access to those documents. we are cutting through the red tape for them while still taking reasonable steps to prevent fraud and abuse. and, of course, we have been spending direct payments to americans, a lot of americans, as of last week we issued over 90 million payments. in all this is just a fraction of treasury's work. there is so many more relief programs including on

(d)cdfi and mdi participation plan.-section 3004 of the state small business credit initiative act of 2010 (12 u.s.c. 5703) is amended by adding at the end the following: "(e)cdfi and mdi participation plan.-the secretary may not approve a state to be a participating state unless the state has provided the secretary with a plan detailing how minority depository institutions and community development financial institutions will be encouraged to participate in state programs.". (e)pandemic response plan.-section 3004 of the state small business credit initiative act of 2010 (12 u.s.c. 5703), as amended by subsection (d), is further amended by adding at the end the following: "(f)pandemic response plan.-the secretary may not approve a state to be a participating state unless the state has provided the secretary with a description of how the state will expeditiously utilize funds to support small businesses, including business enterprises owned and controlled by socially and economically disadvantaged individuals, in respon

we helped mission lenders, such as cdfi's and minority depository institutions so we could really try to reach the underserved communities. and we established a program for shuttered venues. why? because shuttered venues were shuttered. these were institutions that could not operate because of government order, and we recognized we had to do something special in order to deal with that. so when you put that all together, what happened? well, we saved a lot of small businesses, and we should be proud of that record. seven million paycheck protection program loans, forgivable loans were granted for $678 billion. 3.7 million eidl loans were given for $200 billion. and we were oversubscribed for the eidl advance of $20 billion. so we were able to really help, but more is needed. when we passed the omnibus bill in december, we recognized that that would hold us until march. well, mr. president, it's now march. we need to act to complete the work. the trump administration in administering the s.b.a. programs did things that we thought were unacceptable. they put a cap on the eidl loan of $1