Northwest Credit Unions Work Quickly to Fund Additional Paycheck Protection Program Loans
April 28, 2020
4/28/2020In the first phase of the SBA Paycheck Protection Program, credit unions provided loans to locally owned restaurants, retail shops, small construction companies, nonprofits, and other Main Street businesses.
Northwest credit union teams worked overtime in the runup to the second phase of the Small Business Administration’s Paycheck Protection Program, getting their member business owners who were not funded in the first phase, into the queue for approvals. Between April 3, when $350 billion in funding became available, and April 16, when those funds were exhausted, credit unions and other financial institutions in Idaho, Oregon, and Washington obtained nearly 63,000 loans totaling $12.5 billion.
Congress approved an additional $310 billion in funding last week, which became available Monday morning.
Within just minutes after the SBA resumed accepting loan applications, its intake portal crashed, however, making for another frustrating start. The first phase of the program also saw technology hiccups and other delays, but credit unions’ teams persevered in getting members’ applications approved.
The first round of the SBA program came under intense media scrutiny when it was revealed that major restaurant chains, and even a National Basketball Association team, received funding. Amid an onslaught of backlash, many of those entities gave the money back.
“More than $2 billion of the first round of #PaycheckProtectionProgram funding was either declined or returned and will be made available during the current application period,” tweeted Jovita Carranza, SBA Administrator.
While the SBA has not yet published a comprehensive list of loan recipients, the Northwest Credit Union Association’s SBA survey, filled out by credit unions across the region, found loans went to typical Main Street businesses, such as locally owned restaurants and food carts, small construction companies, nonprofit organizations, and retail shops.
According to the Credit Union National Association, the average amount of a credit union-funded SBA PPP loan was $64,000.
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Posted in Public Awareness.