CUNA and its members seek additional guidance on how Paycheck Protection Program (PPP) loans work in conjunction with NCUA’s member business lending requirements, CUNA wrote to NCUA Chairman Rodney Hood Friday. PPP is a Small Business Administration program aimed at providing loans to small businesses impacted by the coronavirus disease (COVID-19) pandemic.
“We have recently heard from credit unions that they have concerns about how PPP loans work in conjunction with NCUA’s member business lending requirements,” the letter reads. “Furthermore, our members seek guidance on the impact of the Federal Reserve Board’s April 6, 2020 announcement of a Paycheck Protection Program Lending Facility (PPPL facility) to provide term financing backed by PPP loans and whether additional NCUA rulemaking is necessary to fully utilize this facility.”
The specific questions CUNA member have: