Target Market Waiver Extended for Lending Under Round Three of Paycheck Protection Program

The U.S. Treasury Department and Small Business Administration (SBA) recently announced the reopening of a third round of the Paycheck Protection Program with $284 billion in funding that was authorized by the Coronavirus Response and Relief Supplemental Appropriations Act (Pub. L. 116-260). This includes $15 billion in lending authority set aside specifically for Community Financial Institutions, which include Community Development Financial Institutions (CDFIs), Minority Depository Institutions (MDIs) and Certified Development Companies (CDCs).

In recognition of the unique and important role CDFIs played in delivering this critical small business assistance to distressed and underserved communities, the Community Development Financial Institutions Fund (CDFI Fund) announced in December that all PPP loans originated in any Eligible Market—including those outside of a CDFI's approved Target Market(s)—during calendar year 2020 may be treated as Target Market activity for the purposes of recertification, without the need for a Target Market modification.

The CDFI Fund is extending this policy to all first draw and second draw loans originated by CDFIs under the third round of PPP in calendar year 2021. To provide further clarification of this policy and information related to additional compliance requirements impacted by PPP, the CDFI Fund will be providing updated Frequently Asked Questions that will be available on the CDFI Fund website within the next two weeks.

Questions regarding CDFI Certification, compliance or program requirements may be directed to the CDFI Fund by e-mail to; via an AMIS Service Request; or by phone to (202) 653-0423.

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