WASHINGTON–NAFCU has identified several provisions within the HEROES Act it is hopeful will be included in any future legislation, included related to the Paycheck Protection Program, while CUNA has sent a letter to the Hill advocating for a change it said could help create 50,000 jobs.
Separately, a bank trade group has introduced a new loan campaign related to the PPP.
NAFCU’s Brad Thaler said the trade group is hopeful certain provisions in the HEROES Act, including a $1 billion appropriation for the CDFI Fund, will make it through whatever form the next round of stimulus spending takes.
The CDFI proposal, he noted, has seen some bipartisan support in the Senate, which has already made clear the HEROES Act as passed by the House is dead on arrival.
In addition, Thaler said proposed changes in the SBA’s Paycheck Protection Program that could help credit unions funnel more money to Main Street also has NAFCU’s backing should those proposals move forward.
Regarding the PPP, which was met with a wave of questions and uncertainty when it was first announced, Thaler said the second round of funding, representing $310 billion in potential PPP loans, has gone considerably smoother than round one as both the SBA and financial institutions have gotten better at all aspects of the program.
“There are still some questions and there have been a few hiccups,” but NAFCU-member credit unions have reported far fewer problems, he said
CUNA Letter Promotes 50,000 Jobs
Meanwhile, CUNA Chief Advocacy Officer Ryan Donovan wrote to all 535 Congressional offices and highlighted how congressional changes to the credit union member business lending (MBL) cap of 12.5% of assets can help America’s communities as they recover from the pandemic.
In the letter, Donovan linked to a CUNA advocacy document outlining how credit unions are positioned to deploy capital to small businesses and entrepreneurs around the country.
“You can have a direct impact on rebuilding America’s communities by temporarily removing the statutory business lending cap on credit unions,” Donovan wrote. “Taking action now will free up $5 billion to lend to small businesses [and] create 50,000 jobs to support local employers.”
Banker Campaign
Separately, the Independent Community Bankers of America launched a Paycheck Protection Program loan campaign at www.icba.org/ppploan to connect the nation’s small businesses with local community banks that continue to offer these loans in the midst of COVID-19.
“The multichannel effort identifies small businesses nationwide and introduces them to the community banks that have helped fund Main Street throughout the crisis,” the ICBA said. “The outreach features a focused community bank finder, along with targeted efforts on multiple social and digital channels including inclusion on Facebook’s Economic Relief for Small Businesses Portal.”
The ICBA said a survey it conducted revealed community bankers were able to fund upwards of 80% of all loans that came their way in this first round of PPP—for an average of 166 loans per bank. Further, survey data shows community bank loans reached Main Street directly, with an average approved loan between $50,000 and $75,000.