Credit unions help small businesses through PPP
Thursday, April 9, 2020
One of the most talked about elements of the CARES Act, the Paycheck Protection Program (PPP), took center stage this week in terms of economic relief for small business owners. The PPP provides $350 billion in loans to small businesses. Administered by the Small Business Administration (SBA), the challenges with the rollout of the program have been well documented – lack of guidance for lenders, lack of access for small business owners, and an SBA portal overloaded with applications.
The Carolinas League joined CUNA and other leagues across the country last week in a joint letter requesting changes to the PPP, including more guidance, extended loan terms, and that ability of credit unions to participate as borrowers.
“We knew businesses, as soon as the doors opened this morning, they were going to be clamoring for information and resources,” said CUNA President/CEO Jim Nussle in a recent interview for Hearst TV. "[These loans are designed to] provide a stream of income during this time when the economy is really in a coma."
Despite the challenges, credit unions across the country, including several in the Carolinas, have stepped up to help and support their small business owners with PPP loans.
“There have certainly been and continue to be unanswered questions and challenges around the program,” shared Dan Schline President/CEO of the League. “However, we have several credit unions in our two states with active business lending programs that have opted to participate. These credit unions will help thousands of small business owners and have a huge impact on their local communities.”
The League, in conjunction with CUNA, continue to provide the latest resources for credit unions interested in learning more about the program. You can find a library of resources and helpful under the PPP tab on the COVID-19 portion of the League’s website.
Please note that the SBA continues to provide updated guidance. As recently as last night (April 8, 2020) the SBA issued new FAQs to provide lenders and borrowers with new additional clarity around the program. We encourage those interested in the latest information on the program to continue to visit the SBA website.