Bridging the Gap: Schwab Supports Small Businesses
Schwab Bank’s Community Development Group finds innovative ways to assist at-risk community organizations, businesses
July 15, 2020
The Community Development Group (CDG) at Schwab Bank manages the Bank’s Community Reinvestment Act (CRA) program and has been collaborating with some of the most innovative and dedicated financial first responders to support our most vulnerable communities through the COVID-19 crisis. CDG recently partnered with the Rural Community Assistance Corporation (RCAC) to leverage the Paycheck Protection Program (PPP), a federal forgivable loan program through the CARES Act, to provide emergency relief to small businesses affected by pandemic.
In June 2020, CDG closed a $25 million loan to Rural Community Assistance Corporation (RCAC) designed to bridge PPP loans to small business owners across 13 Western States. Our loan enables RCAC to quickly respond to and fund loans to Covid-19 impacted small business.
"As the pandemic unfolded, there was a real risk that vulnerable communities would be left out of the PPP program, which would greatly impact rural and Native economies. Charles Schwab stepped up to be part of the solution by providing RCAC with zero percent capital, which was critical to us being able to quickly get PPP loans out to rural and Native small businesses."
Suzanne Anarde, RCAC Chief Executive Officer
One such business is the United Cerebral Palsy (UCP) of San Luis Obispo in California which was left out of the first round of PPP loans, and operated with no revenue for weeks. UCP provides critical services to people with a range of developmental disabilities, seniors, veterans and low-income families, and has been particularly essential during the pandemic. RCAC provided a $395,000 PPP line of credit so UCP can continue to provide critical services to the community and pay its employees.
RCAC a nonprofit organization and a certified Community Development Financial Institution (“CDFI”), whose mission is to provide training, technical, and financial resources and advocacy to achieve their goal of vibrant, healthy and enduring rural communities throughout the Western States. RCAC’s Loan Fund was established in 1988 in response to unmet financial needs in rural communities, providing loans for affordable housing, community facilities, environmental infrastructure and small businesses in rural communities with populations of 50,000 or less.
For more information on RCAC please visit:
For more information on RCAC’s Paycheck Protection Program: