Congresswoman Petitions for FCU Access of Payroll Tax Credit

Rep. Linda Sanchez, D-CA
Rep. Linda Sanchez, D-CA

At the request of the California and Nevada Credit Union Leagues and the Credit Union National Association (CUNA), Rep. Linda Sanchez (D-CA) — a leading member of the House Ways and Means Committee (the tax committee) — joined with Rep. Ron Estes of Kansas to send a letter to Treasury Department Secretary Steven Mnuchin petitioning for a change in guidance to allow federal credit unions access to the payroll tax credit within the Families First Coronavirus Response Act.

This bi-partisan pair point out, with Treasury’s guidance, that a technical fix in law could be avoided as the law was aimed at local governments, not federal credit unions.

In the law, authorization was given for a payroll tax credit for all businesses except for those deemed a federal instrumentality. Under mixed definitions, federal credit unions meet this definition, thus not allowing them to receive this tax credit.

The Leagues hope that the Treasury and the Internal Revenue Service (IRS) will respond in a reasonable amount of time, aiding federal credit unions.

Treasury: Large PPP Loans to Receive Reviews
As large lenders access the latest round of Paycheck Protection Program (PPP) loans for businesses, the Treasury Department has announced that any PPP loan over $2 million will receive a full review before being forgiven.

According to Bloomberg, Treasury Secretary Steven Mnuchin said the program was not designed for public companies with ample liquidity.

SBA: PPP Guidance Updated
The U.S. Small Business Administration (SBA) and Treasury have updated guidance for lenders that have received a significant amount of PPP loan applications. The minimum amount of lender-approved and SBA-ready PPP loans a lender must have ready for the XML file submission process is now 5,000 loans.

The XML files of 5,000 or more approved PPP loans must have been submitted to SBA by 6 p.m. (Pacific) on the evening of Monday, April 27. You can view the SBA and Treasury’s guidance here.

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