The Inspector General of the Small Business Administration warned that during the earlier Paycheck Protection Program lending, businesses on a Treasury Department “Do Not Pay” list were approved for $3.6 billion in loans. It is not clear how much of the money was actually distributed.
The new Paycheck Protection Program starts with initial lending limited to businesses who have not received a PPP loan and lending going through Community Development Financial Institutions, Minority Depository Institutions, certified development corporations and microlenders. After a few days the lending options open further.
A controversial Consumer Financial Protection Bureau task force on consumer financial law released its final report the day before a hearing about its makeup was to be held in a federal court in Massachusetts. Credit unions will like its recommendation that all credit unions be allowed to serve underserved areas. Consumer groups will object to many of the other recommendations and it is unlikely the Biden Administration will accept them.
Congress overrode President Trump’s veto of the 2021 defense authorization bill, meaning that credit unions, but not banks, will continue to have free rent on military bases next year. Also in the bill and becoming law are anti-money laundering provisions that require information on beneficial owners of companies to be collected and then kept by the Treasury Department for use by law enforcement.
The coronavirus economic impact payment may cause credit unions regulatory issues, credit union trade groups warned. The increase in credit union balance sheets may trigger new regulatory requirements. The Credit Union National Association wants a rule that will allow credit unions to use an earlier date for asset data.
Financial and industry trade groups, including the Credit Union National Association and the National Association of Federally-Insured Credit Unions, would like guidance and rules for the new Paycheck Protection Program issued soon so that there will not be constant updates and changes like those that occurred during the first PPP. The groups sent a letter to the Small Business Administration and Treasury Department, suggesting comprehensive and timely guidance on the program rules so that a smooth implementation can occur.
President Trump on Wednesday vetoed the massive defense authorization bill and then threatened to veto the massive economic stimulus and omnibus appropriations bill.
Treasury Secretary-designate Janet Yellen met with representatives of Community Development Financial Institutions and Minority Depository Institutions and made a commitment on behalf of the Biden Administration to support the program.
Comments on the Trump Administration from Credit Union National Association President/CEO Jim Nussle, National Association of Federally-Insured Credit Unions President/CEO B. Dan Berger and National Association of State Credit Union Supervisors President/CEO Lucy Ito.
Kyle Hauptman was sworn in Monday as a member of the National Credit Union Administration board.
Hauptman, a Republican, was sworn in by Chairman Rodney Hood; his term ends on August 2, 2025. Hauptman’s taking office will ensure that Republicans will continue to control the majority on the board even after President-elect Joe Biden takes office, and as expected, appoints Democrat Todd Harper as chairman.