Patelco CU: Helping Small Businesses Tap Into PPP Funds

Mike Poirier
Patelco CU Vice President of Consumer And Commercial Loans Mike Poirier

Editor's Note: This is an excerpt of an article that appeared originally on CreditUnions.com and features a roundup on the successes and challenges credit unions around the country faced trying to ensure business members could tap into Paycheck Protection Program funds. Below is Patelco CU's story: 

Mike Poirier, vice president of consumer and commercial loans at Patelco Credit Union ($7.5B, Pleasanton, CA), says the credit union did not participate in round one of PPP because its focus is on supporting individual members rather than businesses.

“However, we heard from our members that many who have businesses were unable to access the PPP loans in the first round,” Poirier says. “For this reason, Patelco decided to participate in the second round, focusing on our existing members with businesses that constituted 25 employees or less.”

Patelco applied to become a certified SBA lender and received approval in less than a week. It also worked with a credit union service organization to set up appropriate procedures.

“We began contacting members that had shown interest,” Poirier says. “We submitted our first applications on April 27 and received notification from SBA of approval the same day. We have had same-day responses on all of our applications. Our average loan amount is less than $15,000 due to our focus on smaller businesses. Overall, the process has gone relatively smoothly.”

Patelco has so far provided 44 PPP loans totaling more than $551,000, although the credit union has offered $5 million in relief loans at below-market interest rates since the shelter-in-place orders began in California, in addition to providing loan deferments on mortgages and personal loans for more than 12,000 members.

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Weekly Update: CA and NV Credit Union COVID-19 Relief
According to weekly survey data collected by the California and Nevada Credit Union Leagues from late March to late May, credit unions in both states have accomplished the following for their members:

  • Nearly 560,000 members have been provided financial relief.
  • Over 533,000 extensions made on nearly $14.5 billion in member loans.
  • Approximately $68 million provided in emergency loans to members.
  • More than 2.4 million fees waived for members.
  • $1.3 billion employee/business loans made via the Paycheck Protection Program (PPP) loans from the Small Business Administration and Treasury Department’s federal relief program.

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 and which ones are participating in the SBA’s PPP funding efforts.

The data represents a great majority of credit unions in California and Nevada, but not all. The Leagues are encouraging credit unions at the beginning of each week 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.

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