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More than 700 credit union paycheck protection program (PPP) lenders with assets less than $1 billion have approved $2.8 billion in loans, according to the latest loan report released by the Small Business Administration (SBA). Of note, the average loan size has decreased by $1,000, dropping to $113,000. As of June 6, $130 billion of round two funding remained.

President Donald Trump last week signed into law legislation to add flexibility to how PPP funds are used, including extending deadlines for using the loans and rehiring workers. Access NAFCU's newly updated version of its PPP FAQs noting these changes

“This bill will provide businesses with more time and flexibility to keep their employees on the payroll and ensure their continued operations as we safely reopen our country, " said SBA Administrator Jovita Carranza and U.S. Treasury Secretary Steven Mnuchin in a statement. "We look forward to getting the American people back to work as quickly as possible.”

The SBA has also indicated that it will "promptly" issue rules and guidance, including a modified borrower application form and a modified loan forgiveness application to implement the legislative amendments to the PPP.

Carranza and Mnuchin are expected to update the Senate Small Business Committee on implementation of the PPP during a hearing tomorrow.

Additionally, the SBA has released an interim final rule related to telephone cooperatives. Under the rule, telephone cooperatives that are exempt from federal taxation under section 501(c)(12) of the internal revenue code are eligible to apply for a PPP loan.

As the Senate considers Phase 4 relief provisions, NAFCU President and CEO Dan Berger urged lawmakers to strengthen the PPP by ensuring timely, clear guidance, providing more funds and asides for Community Development Financial Institutions (CDFIs) and minority depository institutions (MDIs), and establishing a lender hold harmless provision.

NAFCU will continue to monitor potential changes to the PPP and remain in contact with the SBA, Treasury Department, and Congress to ensure credit unions can lend effectively through the program. Stay tuned to NAFCU Today for need-to-know updates.