CUNA, the American Association of Credit Union Leagues and all 35 Leagues wrote to Treasury and the Small Business Administration leaders Thursday calling for changes to the Paycheck Protection Program (PPP) Interim Final Rule released Thursday. The CARES Act created the PPP funded at $349 billion for loans by SBA-approved lenders to help businesses keep workers on their payroll.
“Credit unions’ participation is critical to the success of this Program. Small business lending, including but not limited to SBA 7(a) lending, is very important to what we do, built on relationships, local knowledge, and underwriting skills honed over generations. Our chief concern is that, as written, the PPP may be problematic,” the letter reads. “Credit unions were encouraged that the PPP was included in the CARES Act. We were grateful for the opportunity to provide direct input into crafting the statutory parameters of PPP.
We want nothing more than the opportunity to deploy desperately needed credit to help local businesses bridge the current crisis, sustain their employee base and meet their other financial obligations,” it adds.
Chief among concerns is the compressed timeline in which credit unions received the interim final rule hours before the PPP loans go live.
“Furthermore, we have been told that there will be a lending platform to support the loan process but, to the best of our knowledge, our members have not had access to the platform,” the letter reads. “These issues will not keep credit unions from offering PPP loans, but will only add to the challenges of operating a business that is an integral part of the nation’s critical infrastructure during these trying times.”
Other CUNA, AACUL and League concerns, and suggested changes, include: