Newsroom
NAFCU, trades call for additional clarity on PPP proposal
NAFCU joined with several other financial services trade organizations yesterday to respond to recently proposed legislation, the Continuing Small Business Recovery and Paycheck Protection Act, introduced by Senate Small Business Committee Chairman Marco Rubio, R-Fla., under consideration for the Senate’s Phase 4 relief package. The legislation would make changes to the Small Business Administration’s (SBA) paycheck protection program, including an expansion of hold harmless protections for lenders and a simplified forgiveness process for the borrowers.
In the letter sent to Rubio and Ranking Member Ben Cardin, D-Md., the trades called for additional clarity on aspects, such as borrower calculations or documentation, that would be necessary to help streamline any future rules “so they do not impair lenders’ ability to provide access to credit by constraining operating resources.”
“In addition, we believe such clarity would provide significant benefits to borrowers and lenders if changes made in your legislation, are fully implemented at one time, to ensure consistency and reliable rules that all parties can depend on when the loan process restarts,” wrote the trade groups. “Additional FAQs are to be expected, but the continuous changes like we have seen during the first two phases of PPP—where close to two dozen IFRs and a number of FAQs were issued, even just days before the program is set to expire—have only made the program more complicated for small businesses who do not have the resources to constantly update or amend applications.”
The groups also called for the inclusion of a provision permitting lenders to rely on an attestation by a small business certifying their eligibility based upon the revenue or receipt reduction thresholds for the programs in order to simplify the process for struggling small businesses. Additionally, the provision allows lenders to swiftly provide small businesses with the assistance they need, added the trade groups.
Last week, the Senate began releasing details of its Phase 4 package – the HEALS Act (Health; Economic Assistance; Liability Protection; and Schools Act) – which includes several NAFCU-supported items related to small business lending.
Among those provisions are improvements to the PPP, including a simplification of the forgiveness application process for smaller loans, something NAFCU has advocated for as part of the Paycheck Protection Small Business Forgiveness Act for loans under $150,000 as well as other changes for loans between $150,000 and $2 million.
NAFCU will continue its aggressive advocacy efforts to ensure credit unions' needs are included in any final legislation; stay tuned to NAFCU Today for the latest developments. Access NAFCU's PPP FAQs here.
Share This
Related Resources
Add to Calendar 2024-06-26 14:00:00 2024-06-26 14:00:00 Gallagher Executive Compensation and Benefits Survey About the Webinar The webinar will share trends in executive pay increases, annual bonuses, and nonqualified benefit plans. Learn how to use the data charts as well as make this data actionable in order to improve your retention strategy. You’ll hear directly from the survey project manager on how to maximize the data points to gain a competitive edge in the market. Key findings on: Total compensation by asset size Nonqualified benefit plans Bonus targets and metrics Prerequisites Demographics Board expenses Watch On-Demand Web NAFCU digital@nafcu.org America/New_York public
Gallagher Executive Compensation and Benefits Survey
preferred partner
Gallagher
Webinar
Add to Calendar 2024-06-21 09:00:00 2024-06-21 09:00:00 2024 Mid-Year Fraud Review Listen On: Key Takeaways: [01:16] Check fraud continues to be rampant across the country. Card fraud is affecting everyone. [04:31] Counterfeit US passport cards are just another new toolbox in the bad actors’ toolbox. [07:21] Blocking the fallback is the only way to defeat counterfeit cards. [11:17] The best way is constant education to your members in as many channels as you can. [13:02] We are still seeing overdraft lawsuits. Make sure the programming you have at your credit union matches what you have displayed for the members. Web NAFCU digital@nafcu.org America/New_York public
2024 Mid-Year Fraud Review
Strategy & Growth, Consumer Lending
preferred partner
Allied Solutions
Podcast
Add to Calendar 2024-06-21 09:00:00 2024-06-21 09:00:00 The Evolving Role of the CISO in Credit Unions Listen On: Key Takeaways: [01:30] Being able to properly implement risk management decisions, especially in the cyber age we live in, is incredibly important so CISOs have a lot of challenges here. [02:27] Having a leader who can really communicate cyber risks and understand how ready that institution is to deal with cyber events is incredibly important. [05:36] We need to be talking about risk openly. We need to be documenting and really understanding what remediating risk looks like and how you do that strategically. [16:38] Governance, risk, compliance, and adherence to regulatory controls are all being looked at much more closely. You are also seeing other technology that is coming into the fold directly responsible for helping CISOs navigate those waters. [18:28] The reaction from the governing bodies is directly related to the needs of the position. They’re trying to help make sure that we are positioned in a way that gets us the most possibility of success, maturing our postures and protecting the institutions. Web NAFCU digital@nafcu.org America/New_York public
The Evolving Role of the CISO in Credit Unions
preferred partner
DefenseStorm
Podcast
Get daily updates.
Subscribe to NAFCU today.