Analysis: Latest PPP, Eviction Updates, PCA Relief Request

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As not-for-profit entities, credit unions ARE NOT eligible to apply for Paycheck Protection Program (PPP) loans from the U.S. Small Business Administration (SBA) even though the program received expanded eligibility within the recently passed American Rescue Plan Act, according to an alert published by the California and Nevada Credit Union Leagues.

However, credit unions ARE eligible for the Employee Retention Credit. View the Leagues' latest analysis.

PPP Extension Signed by President
President Joe Biden signed H.R. 1799 into law this week (passed by an overwhelming majority in the Senate the week before). It extends the PPP through May 31.

H.R. 1799 was authored by Rep. Young Kim (R-CA). The Leagues greatly appreciate her efforts to pass this legislation in her first three months of office. Credit union leaders have urged lawmakers to extend the PPP deadline, citing concerns about ongoing changes to the program and delays in processing applications for loan forgiveness. The SBA originally had until March 31 to approve funding for PPP loans and grants.

The legislation also requires the SBA to spend those final 30 days closing out applications that were submitted before June 1. Although the bill does not come with additional funding, a sizable amount was already added under the American Rescue Plan Act that became law earlier this month.

CDC Moratorium Extended to June 30
The Centers for Disease Control and Prevention’s (CDC) temporary halt in residential evictions to prevent the further spread of COVID-19 has been extended to June 30. You can read the declaration here or the background summary here. The order temporarily halts residential evictions of “covered persons” for non-payment of rent (originally expiring after March 31), meaning a landlord, owner of a residential property, or other person with a legal right to pursue an eviction or a possessory action cannot evict for non-payment of rent. View the frequently-asked-questions (FAQs) here.
CFPB Statement on Illegal Evictions
The Consumer Financial Protection Bureau and the Federal Trade Commission have issued a joint statement regarding the agencies’ work to help stop illegal evictions and protect consumers facing economic hardship due to the COVID-19 pandemic. The bureau will investigate eviction practices (particularly by major multi-state landlords), eviction management services, and private equity firms to ensure they are complying with the law.

Request for Additional PCA Relief
In a joint letter with other state credit union leagues and the Credit Union National Association (CUNA), the Leagues have petitioned the National Credit Union Administration (NCUA) to uniformly act to provide additional relief to credit unions facing prompt corrective action (PCA) challenges caused by congressional stimulus funds as a part of the American Rescue Plan Act. You can view the letter here.

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