SBA Loan Info, State and Fed Updates, More Resources

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The California and Nevada Credit Union Leagues have posted sample content for credit unions to use in efficiently communicating the Small Business Administration’s Paycheck Protection Program (PPP) to members who inquire. Credit unions should use it as they see fit.

This week, the SBA released its Interim Final Rule providing much needed guidance on the PPP loans. The SBA also released the Lender Agreement to be used by non-SBA lenders to become approved to offer PPP loans.

The Lender Application Form was also released. This form is used to collect identifying information about the lender, the applicant, the loan guaranty request, sources and uses of funds, the proposed structure (which includes pricing and the loan term), and compliance with SBA Loan Program Requirements. This form reflects the data fields that will be collected electronically from lenders; no paper version of this form is required or permitted to be submitted.

Meanwhile, many credit unions have questions regarding applying for the PPP as borrowers. Under the current rules, credit unions do not qualify as borrowers. The Leagues will immediately advise credit unions when our analysis reveals any possible new pertinent information in the coming days.

Stimulus Checks, Fraud Risk and More
Congresswoman Maxine Waters, chair of the House Financial Services Committee, recently sent out a press release that included an FAQ on topics surrounding the CARES Act. She highlighted the potential for consumer fraud when stimulus checks are sent out, which includes information for consumers on what the government will and won’t ask individuals regarding their personal information.

Credit unions should be aware as consumers turn to them for assistance. Please have your team review the excerpts that the Leagues selected from Chairwoman Waters’ news release here.

There is nothing in the CARES Act requiring credit unions to cash CARES Act stimulus checks for non-member consumers. However, California-state and federally chartered credit unions may cash stimulus checks for non-members as long as the individual is within the credit union’s field of membership. (See CA Financial Code 14800.1 and NCUA Regulations Part 701.30)

California Update
The California League is continuing discussions with California Governor Gavin Newsom’s office, which has published a routinely updated public list of financial institutions, mortgage lenders and servicers that are committed to helping individuals with relief due to the economic circumstances of COVID-19. Although the list is not yet complete, the League is proud of so many credit unions that are included and will keep members updated on discussions with the Governor.

The League has also sent a joint letter requesting that the Governor issue an emergency executive order recognizing the validity of documents that are legally remotely notarized so credit unions and a number of businesses within the real estate industry can move forward on pending contracts and transactions without compromising social distancing directives or public health. We are hopeful Governor Newsom will address the issue soon.

Nevada Update
At a press conference earlier this week, Nevada Governor Steve Sisolak spotlighted credit unions’ commitment to the state’s consumers as it responds to the economic crisis created by the Coronavirus pandemic.

Nevada’s 15 locally headquartered credit unions have pledged to help consumers who are financially impacted by the COVID-19 outbreak with potential mortgage forbearance, extensions of some consumer loans, emergency loans, and no negative credit reporting. The Nevada League immediately made this announcement to over 60 news-media outlets across the state.

Because of the commitment by local credit unions — along with banks and mortgage lenders — our movement in the state was framed in a positive light by Nevada Treasurer Zach Conine as he thanked credit unions for what they are prepared to do. The Treasurer applauded Nevada credit unions and acknowledged the Nevada League’s leadership during this unprecedented time.

Best Practices: Communicating with Members
The Leagues’ Financial Relief for Members content provides a template for the front page of your credit union’s website, mobile-friendly landing page, or banking app. You can change it to your specific needs.

Credit unions should also communicate branch updates, including special hours and closures; shelter-in-place banking, such as quick links to online and mobile-app banking resources; and member services and emergency relief to members.

Weekly Survey on Financial Relief
Many California credit union CEOs have responded to the Leagues’ Weekly COVID-19 Survey to measure the combined impact credit unions are making on members through financial relief options. The California League has received responses from 94 credit unions this past week, but we need to routinely hear from as many credit unions as possible out of the 296 headquartered across our state. Please make it a priority to complete this survey when you receive it on Mondays.

For those offering member relief, the League realizes it takes time to implement that relief and compile the backend numbers. This data will speak volumes as we continue communicating with the Department of Business Oversight and Governor Newsom’s office on our efforts, as well as telling your credit union’s story to state and local news media.

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