Credit Unions Vent Frustration With PPP Rules

Credit unions continue to express frustration with the Small Business Administration, contending that they are unsure about how to solve the serious problems they are facing in implementing the popular Paycheck Protection Program.

“Unfortunately, as was expected, the compressed timeframe in which the PPP was enacted and implemented resulted in many challenges for our member credit unions in making, processing, and disbursing loans,” Lance Noggle, CUNA’s senior director of advocacy and counsel said in a letter to SBA officials. “Questions and concerns have morphed as the program is now almost 45 days old.”

New NCUA Low-Income Designation Violates Law: ICBA

A new NCUA policy on counting servicemembers in determining whether a credit union is” low-income” is an illegal expansion of the limits Congress has placed on the institutions, the Independent Community Bankers of America charged Thursday.

“The NCUA’s changes–made without a formal rule subject to public review and comment–is another example of this captive regulator expanding the powers of credit unions well beyond the limits established by Congress to justify their tax exemption,” ICBA President/CEO Rebeca Romero Rainey said.

CUNA Pushing for $1 Billion Boost for CDFIs

A coalition of supporters of the Community Development Financial Institutions program has asked Congress to set aside $1 billion for the program in the next coronavirus economic relief measure.

In a letter to congressional leaders, the groups, including CUNA, contend that federal financial relief funding is not reaching small businesses and families that are not served by mainstream lending institutions. CUNA noted that there are 324 CDFI-certified credit unions across the country.