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
  • Jobs
  • Contact

News

Home » Credit unions continue PPP lending as issues continue
Policy & Issues

Credit unions continue PPP lending as issues continue

February 16, 2021
Conv

Credit unions continue to make Paycheck Protection Program (PPP) loans through the original and Second Draw programs to help small businesses survive the pandemic, CUNA wrote to the Small Business Administration (SBA) Tuesday.

The Second Draw program allow certain eligible businesses to receive a second forgivable loan under generally the same terms and conditions available under the Paycheck Protection Program.

CUNA’s letter notes that, while the SBA has made implementation of the Second Draw program easier, there is still room to make improvements.

“One suggestion is that the SBA could provide a much simpler user-friendly format (like the Q&A) for assisting lenders in processing Second Draw Loans, rather than the list of error codes and bullet points in the notice,” the letter reads. “This would allow lenders to process these loans with less confusion and ensure the funds are not held up for eligible borrowers due to lenders being unable to understand all the error codes and the required “fixes” to get around the codes.

“Credit unions also continue to be challenged by a slow approval process. One issue slowing the approval of loans is errors given during processing for what should be correct applications,” the letter adds.

CUNA provided several specific examples of errors member credit unions have experienced and noted that credit unions are concerned they may not have “adequate support” from the SBA to remedy issues.

“Credit unions have reported to CUNA extended delays running into weeks for help from call centers, which makes it difficult to obtain help with questions and issues. We have also heard that the SBA servicing team is backlogged with tax ID issues from the forgiveness process,” the letter reads. “In addition to customer service issues, we received feedback that this round of PPP loans requires more extensive validation through multiple systems to process applications. The accumulation of these issues slows the loan process and credit unions’ ability to provide relief to Americans.”

Credit Union Magazine: Winter 2022

Winter 2022

Credit Union Magazine’s Winter 2022 issue highlights data-driven marketing, the board’s role in cybersecurity, elder abuse scams, credit unions’ auto lending advantage, and more.
Digital Edition •  Subscribe

Trending

  • Reps introduce bipartisan Credit Union Board Modernization Act

  • CDFI Fund announces CUNA-sought delay to consider application changes

  • CUNA makes recommendations for CFPB personal data rights rulemaking

Tweets by CUNA_News

Polls

How do you feel about the economy in 2023?

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
© 2023 Credit Union National Association | ADA Compliance Notice & Legal
Email Us