Credit unions step up for businesses

Credit unions step up for small businesses

I’ve talked a lot about the SBA’s PPP Loan program, especially as CUNA and Leagues were pushing Congress, Treasury, and the SBA to improve the process so that credit unions could better serve their members. 

Recently, the SBA released data on the PPP Loan program that puts numbers to what we know to be true: credit unions fought through the logistical nightmare surrounding the program’s rollout and helped keep small businesses alive. 

As of June 30:

• 196,010 loans have been made by credit unions
• $49,487 average credit union loan size
• 1.18 million jobs have been supported through credit union PPP loans
• 900+ credit union lenders have participated in the program
• $9.7 billion in loans have been made by credit unions

I’m extremely proud of how credit unions have responded to COVID-19. Our movement has shown its true character and commitment and PPP Loan data is just one example of the impact we’ve had on members throughout this crisis. And there's still time to help businesses in your community – the program has been extended until August 8th with almost $132B left in available funds.

360-degree advocacy

• NCUA: We support NCUA’s proposed rule on joint ownership for share accounts because it would increase flexibility and provide parity with banks.
• FCC: We joined other trades in sharing our concerns with the FCC that legitimate calls from credit unions continue to be blocked under a framework that is meant to target illegal robocalls.
• CDFI Fund & CDRLF: We called on House appropriators to include funding for the Community Development Financial Institutions (CDFI) Fund and Community Development Revolving Loan Fund (CDRLF), neither of which are currently included in the President’s budget requests for FY2021.
• Cooperative Development Program: We shared our strong support for renewed funding for the Cooperative Development Program, which benefits credit unions worldwide. 
• Financial inclusion: We engaged in a House hearing on the barriers women- and minority-owned businesses face accessing credit in a crisis, sharing steps that would help credit unions do more to support these underserved businesses. 

Four new regions launch Open Your Eyes to a Credit Union?

Credit Union Awareness made a big announcement this week that four new regions will be added to the roster of states running the Open Your Eyes to a Credit Union campaign. Northern California, Texas, Tennessee, and Rhode Island round up the number of launched states to 24 by the end of July! Credit Union Awareness took steps early in the COVID-19 crisis to reassess how the campaign relates to consumers in this quickly evolving economy. The refreshed campaign content has been in market since May, and we’re excited to bring the credit union message to consumers in more parts of the country.

Credit union foundations make huge impact

Over the last several months I’ve shared stories of how all the different stakeholders in our system are embodying our “people helping people” mission and making a difference in this crisis. The National Credit Union Foundation (NCUF), State Credit Union Foundation Network (SCUF), and all the state League foundations deserve special recognition. I encourage everyone to read an article in CU Insight that highlights this impact, written by Gigi Hyland, Executive Director of NCUF, and Melanie Murphy, Chair of SCUF and Executive Director of the Illinois CU Foundation.’

Strategic planning resources for you

I know many of us have been in crisis management mode for a while now, but long-term planning is still incredibly important. To get you started, check out this data from four of the 10 trends featured in the 2020-2021 CUNA Environment Scan (E-Scan), now available for purchase. To keep your planning relevant, you’ll also get access to a Fall 2020 content update as trends evolve.

Minnesota credit unions join statewide forbearance effort

One more example of the credit union difference for my message today (I really could go on and on…). I want to commend the 27 Minnesota credit unions that have signed on to an agreement with the Minnesota Governor, Lieutenant Governor, and Attorney General to provide a uniform set of mortgage relief options for Minnesotans. These guidelines include a 90-day mortgage forbearance for members impacted by COVID-19, among other relief efforts.