SBA Update and NCUA Letters


Yesterday, the U.S. Small Business Administration hosted a conference call regarding Paycheck Protection Program (PPP) loans, providing valuable information and updates. Here are key takeaways:

  • 282,000 loan applications had been submitted by 3,350 lenders, totaling $76 billion, as of late afternoon on April 7. In addition, 301 new lenders had been approved.
  • The SBA encouraged lenders and small businesses to be patient; it is still working things out while handling the flood of requests. New lender applications are being processed as fast as possible.
  • The SBA does not expect to run out of funds.
  • If lenders have trouble accessing the Capital Access Financial System (CAFS) or the E-Tran service, they can call 833-572-0502.
  • For questions regarding the PPP loan program, email
  • More information on loan authorizations and loan note language “is forthcoming.”
  • Lenders may use their own loan documents for loan-closing or use the SBA Form 147; however, the SBA will be providing specific PPP loan note language. Furthermore, lenders don’t have to wait until the SBA has a PPP Loan Note — if a loan is approved, a lender can use its own loan note or Form 147 to close and disburse funds and then amend the note later.
  • Regarding liquidity issues, the SBA is working on guidance on advance purchases of estimated loan forgiveness (7 weeks); purchases of loan forgiveness (8 weeks); using PPP loans as collateral at the Fed Discount Window; and selling loans on the secondary market.
  • If a lender submits an application and receives approval and loan number for a dollar amount, and then renegotiates the amount with the borrower, the lender must go back into E-Tran to update the loan amount to ensure adequate funds are set aside to guarantee all loans.
  • The loan must be fully funded before the lender can request payment of processing fees from the SBA. Beyond that, the SBA will issue guidance on how to request payment.
  • Additionally, the SBA is still working on processes for servicing the loans, including purchases of loan forgiveness and how long it will take the administration to pay a lender when a request for loan forgiveness is submitted. Guidance is forthcoming.

NCUA’S Latest Relief Letters
The National Credit Union Administration issued Letter to Credit Unions #20-CU-06 yesterday, which outlines the SBA’s Paycheck Protection Program and COVID-19 Economic Injury Disaster Loans.

The NCUA has also issued a letter providing vital information about key changes affecting credit unions due to the recently enacted Coronavirus Aid, Relief, and Economic Security Act (CARES Act). Topics include the following: Central Liquidity Facility; Insured Deposits Threshold; Temporary Relief from Troubled Debt Restructurings; Paycheck Protection Program; Optional Temporary Relief from Current Expected Credit Losses; Credit Protection During COVID-19; Foreclosure Moratorium on Single Family; Mortgages and Consumer Right to Request Forbearance; Forbearance of Residential; and Mortgage Loan Payments for Multifamily Properties with Federally Backed Loans.

Complimentary BCP Pandemic Tool
As a benefit of League membership, PolicyWorks — the Leagues’ compliance services partner and provider — is offering credit unions complimentary access to the new ViClarity Business Continuity Plan (BCP) Self-Assessment Pandemic Execution tool until Sept. 1, 2020. You can review your current BCP for pandemic execution and identify gaps with this easy-to-use tool. To request access, complete this form.

New Scam Alert
The Treasury Inspector General for Tax Administration (TIGTA) has launched a page on its website for individuals to learn about and report Coronavirus scams. TIGTA will also be issuing press releases and alerts regarding Coronavirus scams.

CU Resources: COVID-19
Visit our COVID-19 Resources webpage to find the above information and additional resources your credit union needs to serve members.

Email our response team at

COVID-19 Updates on League App
Download the League App to stay informed daily.

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