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NAFCU President and CEO Dan Berger, in a letter Thursday to Small Business Administration (SBA) Administrator Jovita Carranza, asked the agency to continue to approve lender portal access during this time and to provide additional guidance on loan forgiveness for its paycheck protection program as he stressed "the importance of ensuring that the opportunity to assist small business members during this uncertain time is available to all credit unions."

"Credit unions provide essential financial services to underserved communities across the country, including in rural areas, where some banks have abandoned consumers," Berger wrote. "Credit unions have acted as quickly as possible and made every effort to offer PPP loans to their members."

While some credit unions were able to offer PPP loans successfully from the start, others experienced issues, and, "[g]iven that the funds appropriated for the PPP have been exhausted, the SBA must ensure access requests to the SBA’s lending portals are still being processed and approved while Congress negotiates the appropriation of additional funds," Berger added.

Berger noted credit unions that were not previously SBA-approved lenders had to submit applications and wait to be approved, causing a backlog in members' applications for PPP loans. "Simply providing credit unions with access does not obstruct the program, as no new loans or new lenders may be approved until more funds are provided," Berger said.

"However, obtaining access for additional authorized users has been a significant roadblock for many credit unions seeking to participate in the PPP and has prevented access to this essential source of liquidity for countless small business owners."

He also asked the SBA to pursue efforts to expedite the lending portals' processing to prevent delays in approvals and to provide more information when an application is flagged as already having been submitted by another financial institution.

In addition, Berger specifically sought more guidance related to loan forgiveness provisions of the program to clarify when credit unions can begin accepting applications for forgiveness and to help guard against fraudulent applications.

NAFCU will continue to work with the SBA, Treasury Department, and Congress to obtain more guidance and resources for credit unions to participate in the PPP. The association has developed a set of FAQs for the program; more information is also available on the SBA's and Treasury's websites.