CUNA News
  • LOG IN
  • Create Account
  • Sign Out
  • My Account
  • LOG IN
  • Create Account
  • Sign Out
  • My Account
  • Topics
    • Community Service
    • Compliance
    • Credit Union Hero
    • Credit Union Rock Star
    • Credit Union System
    • Directors
    • Human Resources
    • Leadership
    • Lending
    • Marketing
    • Operations
    • Policy & Issues
    • Sales & Service
    • Technology
  • Credit Union Magazine
    • Buyers' Guide
    • COVID-19
    • Digital Edition
    • Credit Union Hero
    • Credit Union Rock Star
    • Subscribe
    • Advertise
    • Contact
  • Advertise
  • Awards
    • Nominate Credit Union Hero
    • Nominate Credit Union Rock Star
  • Podcasts
  • Videos
  • Contact

News

Home » Congressional action on PPP forgiveness, liability protections needed
Policy & Issues

Congressional action on PPP forgiveness, liability protections needed

December 10, 2020
Cap2

Credit unions have numerous Paycheck Protection Program concerns that could be alleviated by Congressional action, CUNA wrote to the Senate Small Business Committee Wednesday. Credit unions helped facilitate more than 170,000 PPP loans averaging $49,000 per loan.

“Now that the PPP program has transitioned to the loan forgiveness phase, credit unions are concerned that the loan forgiveness process is overly complicated for most businesses,” the letter reads. “The process is so complex that most businesses may need to retain counsel to navigate the application process – an expense many of the smallest businesses cannot afford during normal times, much less in this crisis.”

CUNA strongly supports legislation introduced in both chambers that would allow simple forgiveness for PPP loans under $50,000.

CUNA also remains concerned about:

  • Small Business Administration loan necessity questionnaires, as the review process could adversely affect borrowers and lenders;
  • PPP related liability due to a lack of guidance of certain PPP aspects. CUNA calls on Congress to “enact commonsense liability protections” for PPP lenders.

The letter also recommends, should the PPP be reauthorized, the SBA:

  • Improve national and regional operations to provide more timely feedback to lenders and borrowers, including:
    • Lender prioritization guidance;
    • Official guidance formalizing the use of PPP forms; and
    • Guidance on the loan purchasing process.
  • Issue guidance and forms to reflect that privately insured state-chartered credit unions are eligible to lend through the program.

KEYWORDS Paycheck Protection Program
Credit Union Magazine: Spring 2022

Spring 2022

Credit Union Magazine’s Spring 2022 edition profiles four Credit Union Heroes and examines CUNA's advocacy priorities, the advocacy army, and financial well-being for all.
Digital Edition •  Subscribe

Trending

  • FOM modernization bill passes House Financial Services Committee

  • FOM modernization bill is free-market solution to address financial access

  • Payment services hub explained

Tweets by CUNA_News

Polls

Are you ready for CECL?

View Results
More

Champion for the Credit Union Movement

Credit Union National Association is the most influential financial services trade association and the only national association that advocates on behalf of all of America's credit unions. We work tirelessly to protect your best interests in Washington and all 50 states. We fuel your professional growth at every level and champion the credit union story at every turn.

More CUNA

  • Membership
  • Contact Us
  • Careers

Resources for

  • Credit Union Advocates
  • Leagues
  • Press
  • Providers

Our Affiliates

  • American Association of Credit Union Leagues (AACUL)
  • Credit Union Awareness
  • Credit Union House
  • CUNA Strategic Services
  • National Credit Union Foundation
GET CUNA UPDATES
© 2022 Credit Union National Association | ADA Compliance Notice & Legal
Email Us