Fed to set up facility to purchase PPP loans; NAFCU here to assist CUs

As credit unions seek ways to support members impacted by the coronavirus, including through the Small Business Administration’s (SBA) new paycheck protection program, NAFCU remains steadfast in its commitment to provide the best federal advocacy, compliance assistance, and education to ensure credit unions can do so effectively.

Last week, the SBA released an interim final rule to implement the program. NAFCU developed a set of FAQs following the rule’s release for credit unions interested in providing loans through the program. Several credit unions have had difficulties accessing the required systems and submitting paperwork; NAFCU Executive Vice President of Government Affairs and General Counsel Carrie Hunt told Reuters these issues should have been resolved before the application process started.

In addition, to ensure credit unions and other financial institutions have capacity within their balance sheets to offer as many loans as possible through the program, the Federal Reserve announced it is working with the Treasury Department to establish a facility to purchase loans made by financial institutions under the paycheck protection program. More details are expected later this week.


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