Newsroom

NAFCU Regulatory Affairs Counsel Kaley Schafer is giving members an inside-look at the Small Business Administration's (SBA) paycheck protection program (PPP) – including help accessing lender portals, what promissory notes are accepted, and updated forms, guidance, and FAQs – in a new post on the association's member-only online Lending Network.

Since the launch of the PPP April 3, the SBA and Treasury Department have been working to address several problems facing lenders and borrowers as applications are submitted and funds processed. NAFCU is also keeping its FAQs updated as more information is available and sharing concerns with agencies as credit unions experience difficulties lending through the program.

Of note, the SBA recently shared an update for lenders that are continuing to experience difficulties accessing CAFS and E-Tran, or did not have previous access. Those lenders may use the SBA’s new online lender portal to process borrower applications through the Paycheck Protection Lender Gateway. Lenders must first create an account on SBA Connect, and request authorization by providing the credit union's NCUA charter number as well as its local SBA office's authorization number. Local SBA office authorization numbers are available here (click on the link under the title “SBA Servicing Office”), or by calling the local office.

In the network post, Schafer details some of the problems credit unions have experienced with the PPP systems. She also explains:

• clarification from the SBA on required promissory note use for PPP loans;
• updates to the lender and borrower applications; and
• questions related to loan forgiveness and reimbursement of costs that have been addressed in the SBA's most recent FAQs.

Read Schafer's NAFCU Insights post on the Lending Network and share your credit union's experience with the PPP or other lending efforts amid the coronavirus pandemic.

Relatedly, NAFCU continues to monitor congressional efforts to provide the PPP with more funding. The association has requested that a portion of additional funds be set aside for credit unions to be able to meet their members' needs.

In addition, the Federal Reserve announced the terms of its PPP facility, which was created to extend credit to eligible financial institutions that originate these loans.

Credit unions are encouraged to contact NAFCU with updates on how they are doing, what assistance they need, and potential areas to address as Congress and regulators work to address the impact of the coronavirus.

Access all NAFCU's coronavirus resources here.