WASHINGTON—Ahead of a House Small Business Committee hearing to examine the Small Business Administration's (SBA) Paycheck Protection Program (PPP), NAFCU outlined the ways credit unions have helped their communities through the program and offered recommendations it said will ensure maximum efficiency.
Brad Thaler, NAFCU VP of legislative affairs, noted 87% of NAFCU members reported providing PPP loans to new members and businesses that had previously been turned away by other lenders. In addition, Thaler explained that, when compared to other lenders, credit unions disproportionately helped the smallest of small businesses. According to NAFCU, that point is made clear in the SBA’s newly released program data, which revealed credit unions made loans in amounts much lower than the national average.
To improve the program, Thaler called for additional guidance on the forgiveness process. Thaler also asked that the committee urge the SBA to make every effort possible to clear the thousands of loan holds currently in the program.
“Moreover, to ensure that small businesses have full access to the PPP through the March 31, 2021 deadline, we ask that any PPP loan applications submitted by the deadline be eligible for subsequent SBA approval even if they are held up by loan holds or process delays,” added Thaler.
‘Make IFR Retroactive’
On the SBA’s recent interim final rule (IFR) to revise the PPP loan calculation for Schedule C filers – which includes sole proprietors, independent contractors, and self-employed individuals – NAFCU noted Thaler called for congressional support for the SBA to make the IFR retroactive so all Schedule C filers can benefit from the policy change.
In addition, Thaler reiterated NAFCU’s call to exclude credit union member business loans made in response to COVID-19 relief from the member business lending (MBL) cap currently in place. Legislation to provide a temporary exemption for these loans was introduced last week—NAFCU has urged lawmakers to support it.