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The Senate Thursday failed to approve $250 billion in additional funding for the Small Business Administration's (SBA) paycheck protection program (PPP) when Democrats and Republicans objected to each other's proposals. The Senate is expected to return for a pro-forma session Monday where they may try again. 

Should no deal be reached that can pass the Senate without objection during a pro-forma session, Senate Majority Leader Mitch McConnell, R-Ky., could call senators back to Washington to vote on additional funding.

Ahead of Thursday's consideration, Democrats sought to include other emergency funding provisions, including one that would have required half of the additional PPP funding go to credit unions and small banks to provide loans to women-, minority-, and veteran-owned businesses.

NAFCU Vice President of Legislative Affairs Brad Thaler Tuesday sent a letter to congressional leadership requesting that a portion of the additional PPP funds be set aside for credit unions "so they can assist their members and meet their needs."

"We support broad access for these programs and we do not want credit union members to be left behind," Thaler wrote. "Credit unions have a strong record of being engaged in underserved areas and can help to stabilize these communities during this difficult time."

As Congress considers measures that will be included in a Phase 4 relief package, NAFCU President and CEO Dan Berger outlined three key areas of relief for credit unions that should be included:

• fixes or updates to earlier relief efforts to address concerns;
• additional relief measures, including capital relief and modernization of the Federal Credit Union and E-SIGN Acts; and
• the importance of note enacting harmful proposals that could affect a credit union's ability to serve their members in the economic uncertainty ahead.

Berger also called on Congress to ensure the Treasury Departments and SBA have the tools and resources to properly administer the PPP.

The Treasury and SBA have been updating their PPP FAQs almost daily to provide lenders and borrowers with needed clarity and instructions. NAFCU is updating its set of FAQs for credit unions as more information is available.

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

The association is encouraging credit unions to join its advocacy efforts and has launched new grassroots campaigns that allow credit unions to directly contact lawmakers on ways to provide more relief and to ensure harmful provisions are not included in future packages.

Credit unions can also contact NAFCU with updates on how they are doing, what assistance they need, and potential areas to address as Congress continues its work to address the coronavirus.