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NAFCU rep testifies on SBA PPP loan forgiveness
Today, NAFCU-witness Leslie Payne, AVP of Commercial Lending at Affinity Credit Union, will testify on behalf of credit unions before the House Small Business Committee during a hearing on the Small Business Administration’s (SBA) paycheck protection program (PPP) loan forgiveness process. NAFCU continues to advocate for credit union PPP lenders by urging SBA to expedite additional guidance to help lenders and borrowers better utilize and adapt to the loan forgiveness process.
During her testimony, Payne is set to underscore that while credit unions like Affinity have adapted as PPP lenders and helped guide many members through PPP forgiveness, there is still a great need for SBA to provide additional support regarding the application process. She will offer insights on the major challenges credit unions face regarding the SBA’s tedious and duplicative documentation requests for applications placed under review- including those for smaller loans.
Payne will also reiterate that many NAFCU member-credit unions have worked tirelessly to implement and understand SBA’s PPP Direct Borrower Forgiveness Portal, there are concerns about limited lender control over the process and difficulties for lenders who must monitor and manually adjust the SBA’s system; the general consensus is that it would have been most helpful at the outset of forgiveness. She will also note how some credit unions are opting out of the program with the notion that the systems they’ve built are more consumer-friendly and the lift to implement the portal would be too difficult.
Prior to the hearing, NAFCU Senior Regulatory Affairs Counsel Kaley Schafer wrote to the SBA concerning its interim final rule to make changes to the PPP forgiveness process. In the letter, NAFCU urged the SBA to expedite the release of related guidance and answer borrow questions in a timely manner. NAFCU also encouraged the SBA to provide clarity on situations where lenders are unable to forgive forgiveness applications.
Of note, recently released PPP loan forgiveness data revealed that SBA has completed 46 percent of the loan forgiveness process, totaling 59 percent of the total PPP loan value to be forgiven.
The hearing is scheduled for 1:00 p.m. Eastern this afternoon and will be available via livestream.
NAFCU will continue to advocate for improvements and transparent guidance to ensure credit unions can lend effectively through the SBA’s programs. Stay tuned to NAFCU Today for the latest from the SBA, Treasury, the Fed, and the administration and any updates from today’s hearing. Access the association's PPP FAQs here.