WASHINGTON—Even with the program currently out of funding, the Small Business Administration (SBA) is being urged to continue to approve lender portal access and to provide additional guidance on loan forgiveness for its Paycheck Protection Program (PPP).
NAFCU President and CEO Dan Berger, in a letter to Small Business Administration (SBA) Administrator Jovita Carranza, stressed "the importance of ensuring that the opportunity to assist small business members during this uncertain time is available to all credit unions."
"Credit unions provide essential financial services to underserved communities across the country, including in rural areas, where some banks have abandoned consumers," Berger wrote. "Credit unions have acted as quickly as possible and made every effort to offer PPP loans to their members."
While some credit unions were able to offer PPP loans successfully from the start, others experienced issues, and, "given that the funds appropriated for the PPP have been exhausted, the SBA must ensure access requests to the SBA’s lending portals are still being processed and approved while Congress negotiates the appropriation of additional funds," Berger added.
A Backlog of CU Apps
Berger noted credit unions that were not previously SBA-approved lenders had to submit applications and wait to be approved, causing a backlog in members' applications for PPP loans. "Simply providing credit unions with access does not obstruct the program, as no new loans or new lenders may be approved until more funds are provided," Berger said.
"However, obtaining access for additional authorized users has been a significant roadblock for many credit unions seeking to participate in the PPP and has prevented access to this essential source of liquidity for countless small business owners."