CUs Step Up for Members as Communities Respond to Pandemic

Fist bump in the office by colleagues

UPDATE: So far more than 350,000 credit union members have been helped, over 330,000 loan extensions made, and $31.4 million provided in emergency loans, according to weekly survey data collected by the California and Nevada Credit Union Leagues.

While credit union data in both states is still being gathered every week, the Leagues' ongoing COVID-19 Impact Survey continues to track how credit unions are assisting consumers during the economic fallout from the Coronavirus pandemic.

The data, however, only represents 52 percent of credit unions in California and Nevada. The Leagues are encouraging credit unions every Monday to complete the survey by sending CEOs a link. The numbers continue helping the Leagues tell a powerful, compelling story about the impact credit unions are making in their communities.

Updated PPP FAQ Sheet
For credit unions making Payroll Protection Program loans, the U.S. Small Business Administration has updated its PPP Loan FAQs.

CARES Act U.S. Treasury Stimulus Checks
Stimulus payouts from the CARES Act via direct-deposit began issuing on April 10. Actual checks are expected to begin issuing in May at a rate of about 5 million checks per week. These U.S. Treasury Department stimulus checks can be verified on the Treasury Check Information (TCIS) Check Verification site. In addition, the website contains information on U.S. Treasury Check Security Features.

Filene Research Institute: Free Resources
Filene Research Institute has made its Resource Hub available to all credit unions over the next few months. The Resource Hub offers valuable pandemic-related reports and resources, including a liquidity worksheet to help credit unions calculate a loan fund. Additionally, Filene encourages credit unions to review its small-dollar lending solutions as a means to help credit union members during this crisis.

For CUs in L.A. County
Credit unions in Los Angeles County were mandated to comply on April 15 with a new order on employee face-coverings issued recently by the Los Angeles County Department of Public Health. Essential businesses must implement social distancing protocol that includes “a requirement to provide all employees whose duties require contact with other employees and/or the public with a cloth face covering to wear while performing duties that involve contact with others.”
 
The department’s new order also extends the county’s “stay at home” COVID-19 response through May 15, which temporarily prohibits all events/gatherings and keeps nonessential businesses/areas closed. It amends and supersedes the last five orders issued by the department in March and is effective for all unincorporated areas and cities within the county, except Long Beach and Pasadena.

Fed’s Main Street Lending Program
The Federal Reserve recently took several actions to support the economy. These actions include implementation of the Main Street Lending Program, which will enhance support for small and mid-sized businesses that were in good financial standing before the COVID-19 crisis by offering:

  • 4-year loans to companies employing up to 10,000 workers or with revenues of less than $2.5 billion.
  • Principal and interest payments will be deferred for one year.
  • Eligible lenders are U.S. insured depository institutions, U.S. bank holding companies, and U.S. savings-and-loan holding companies.
  • Eligible lenders may originate new Main Street loans or use Main Street loans to increase the size of existing loans to businesses.
  • Lenders will retain a 5 percent share, selling the remaining 95 percent to the Main Street facility, which will purchase up to $600 billion of loans.
  • Firms seeking Main Street loans must commit to make reasonable efforts to maintain payroll and retain workers.
  • Borrowers must also follow compensation, stock repurchase, and dividend restrictions that apply to direct loan programs under the CARES Act.
  • Firms that have taken advantage of the Payroll Protection Program (PPP) may also take out Main Street loans.

For more information, please refer to the program’s Term Sheets:

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