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Fed extends PPPLF to June 30; SBA releases updated PPP data
The Federal Reserve Monday announced it will extend its Paycheck Protection Program Liquidity Facility (PPPLF) to June 30. The facility is one of the several programs created by the Fed to support the flow of credit to businesses at the onset of the coronavirus pandemic.
The PPPLF will accept purchased Small Business Administration (SBA) paycheck protection program (PPP) loans as collateral. Currently, SBA qualified lenders include banks, credit unions, community development financial institutions, members of the Farm Credit System, SBA-licensed small business lending companies, and some fintech companies. View the PPPLF term sheet.
Relatedly, according to the SBA's most recent paycheck protection program (PPP) data, more than 2.3 million loans have been approved in 2021, totaling more than $162 billion.
The SBA has also highlighted that that the current round of PPP is "successfully reaching smaller borrowers," with 94 percent of all loans falling under $250,000. The agency highlighted that that credit unions have provided "above program average" PPP loans under $150,000. Of note, the SBA’s dedicated PPP processing window for small businesses with fewer than 20 employees ends today; the program is currently scheduled to end March 31.
In addition, the agency has completed 36 percent of the loan forgiveness process, totaling 32 percent of the total 2020 volume of loans to be forgiven.
NAFCU will continue to advocate for improvements and transparent guidance to ensure credit unions can lend effectively through the PPP and the SBA's other programs. Stay tuned to NAFCU Today for the latest from the SBA, Treasury, the Fed, and the administration. Access the association's PPP FAQs here.