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The House Thursday passed the relief package that includes over $300 billion in additional funding for the Small Business Administration's paycheck protection program (PPP). The Senate passed the package Tuesday; the president is expected to sign the legislation today.

"We thank the House of Representatives for sending to President Donald Trump's desk legislation that will give over $300 billion in additional PPP funding aimed directly at assisting America's small businesses and local communities," said NAFCU President and CEO Dan Berger. "The coronavirus pandemic has presented many challenges for our nation, and this legislation will ensure small businesses and underserved communities across the country have access to the funds they need to help navigate current economic conditions.

"In such uncertain and difficult times, credit unions stand ready to serve those facing financial hardships, and we thank Congress for ensuring credit union members benefit from these important funds," Berger added.

The legislation includes several wins for credit unions, including:

• $250 billion in new funding for the PPP;
• $30 billion of additional funding for the PPP set aside for smaller lenders (including credit unions) with less than $10 billion in assets to help them serve smaller businesses in their communities;
• $30 billion of additional PPP funding reserved for lenders (including credit unions) with assets between $10 billion and $50 billion; and
• additional funding for economic injury disaster loans and grants.

The deal also includes additional funding for hospitals and coronavirus testing.

After Trump signs the legislation, the Office of Management and Budget will next make the PPP funds available to the SBA; the SBA has yet to announce when it will re-start approving loan applications.

The $349 billion originally appropriated for the program was depleted last week. Since the launch of the program, NAFCU has been leading the way to ensure credit unions have all the resources needed to effectively participate in the program, aggressively lobbying Congress throughout negotiations and requesting that a portion of additional funds be set aside for credit unions to be able to meet their members' needs.

In addition, the SBA released updated FAQs today that include a question (No. 31) asking borrowers to assess their economic need for a PPP loan. Although they met qualifications to apply for loans, several big companies came under fire for receiving loans through the program.

Ahead of the House vote, the House Small Business Committee held a hearing to discuss the PPP's impact on small businesses. During the hearing, several committee members noted the important role credit unions have played with the PPP. NAFCU sent a letter to the committee in conjunction with the hearing expressing support for ensuring the PPP has additional funding and urging additional set asides in future PPP funding efforts to ensure that credit unions can meet their members' needs.

NAFCU continues to work closely with the SBA to ensure credit unions have the resources and guidance needed to provide these loans to members. The association last week asked the SBA to provide more guidance related to loan forgiveness provisions of the program to clarify when credit unions can begin accepting applications for forgiveness.

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