WASHINGTON–New numbers released by the Small Business Administration offer an update on credit union participation in the Paycheck Protection Program. Meanwhile, NAFCU noted it is once again addressing potential threats to credit unions that serve military bases.
The SBA’s recently released updated PPP lending report, dated June 6, shows there were 721 credit union PPP lenders with less than $1 billion in assets that have approved $2.8 billion in PPP loans. The new average loan size is $113,000 – a decrease of $1,000 since May 30.
Updated numbers appear below.
NDAA Returns to the Hill
Meanwhile, in advance of the Senate Armed Services Committee's markup this week of the fiscal year 2021 National Defense Authorization Act (NDAA), NAFCU Vice President of Legislative Affairs Brad Thaler reiterated the association's longstanding call to protect credit union nominal leases on military installations and prevent efforts to allow all banks to operate rent-free on military bases.
As CUToday.info reported extensively, credit unions are still fresh off a battle over the issue of leases on military bases that was a part of the 2020 NDAA.
In the letter, Thaler noted that while the Department of Defense (DoD) is not required to offer nominal leases to credit unions, it chooses to do so because, "like many others, [it] recognizes the value that credit unions bring to our men and women in uniform, in good times and bad. For example, during the partial government shutdown last year, many credit unions offered programs to assist those impacted by a lack of a paycheck, while other financial institutions did little or nothing.
‘Unfortunate’ Development
"It is unfortunate that banking groups continue to ask Congress to require that the DoD treat large mega-banks, such as Wells Fargo, the same as a military installation’s local not-for-profit defense credit union when it comes to rent on military bases," Thaler’s letter continues. "While we recognize the important role both credit unions and banks can play for our men and women in the military in the provision of traditional financial services, the fact remains that banks and credit unions are fundamentally different. For-profit banks ultimately focus on benefitting shareholders while credit unions focus on serving their member-owners."