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As Congress continues negations on a Phase 4 coronavirus relief package, NAFCU Tuesday joined with other financial services trade organizations to urge Congress to support small businesses and pass legislation that would continue the paycheck protection program (PPP) and simplify the forgiveness process for PPP loans. The association has continuously worked with the Small Business Administration (SBA), Treasury, and Congress to ensure credit unions' ability to lend effectively through the program and help their small business members.

In the letter, sent to House and Senate leadership, the trade associations noted an impending slowdown to the economic recovery without congressional intervention.

"At the heart of our recovery is the ability for small businesses, which employ tens of millions of people, to pay their employees and maintain their monthly expenses," wrote the group. "The PPP provided over 5 million small businesses the financial lifeline they desperately needed to weather the start of the pandemic and the economic shutdown that followed.

"As these businesses continue to recover, they will need additional resources to maintain business operations, and the PPP remains the most efficient and effective means to assist them through this challenging period," they added.

The group also advocated for a simplified loan forgiveness process, voicing their support for the Paycheck Protection Small Business Forgiveness Act, S. 4117, and the House companion, H.R. 7777 – bipartisan legislation that would provide an automatic forgiveness process for covered PPP loans of less than $150,000.

NAFCU has actively sought automatic forgiveness of small dollar PPP loans for the benefit of both small businesses and credit unions that are recovering from the coronavirus pandemic and may have strained financial and human resources.

The association will continue to advocate for relief measures related to the PPP and regularly update its FAQs as guidance is released. Access all relevant resources here.