CUNA supports NCUA’s changes to rules and regulations supporting credit unions making Paycheck Protection Program (PPP) loans, CUNA wrote to the agency Wednesday. NCUA approved by notation vote in April an interim final rule amending certain regulations for PPP loans.

“CUNA supports the amendments in the interim final rule as they provide guidance and answer many questions CUNA’s members have had about the treatment of Paycheck Protection Program (PPP) loans on their balance sheet,” the letter reads.

Specifically, the interim final rule:

• Amends the NCUA’s capital adequacy regulation so that covered PPP loans receive a 0% risk weight in the agency’s risk-based net worth requirements;
• Excludes PPP loans from the definition of “commercial loan;” and
• Allows a loan to be excluded from a credit union’s calculation of total assets for the purposes of calculating its net worth ratio if the loan is pledged as collateral to the Federal Reserve System’s PPP Lending Facility.