Advocacy Update: Fin. Capability Resolution, PPP, and More

Sacramento capitol building

Senate Resolution 27 (Monique Limón) — relative to Financial Capability Month — passed the California State Senate floor this past week. SR 27 declared the month of April 2021 as “Financial Capability Month” to raise public awareness about the need for increased financial capability in California.

Limón, chair of the state’s Senate Banking and Financial Institutions Committee, worked with the California Credit Union League to introduce this important financial literacy resolution. She recognizes that California credit unions show inspiring passion and dedication for helping their members by providing resources to help improve financial literacy.

Although passing legislation for mandatory financial literacy in school has proven to be difficult, credit unions continue to successfully educate the legislature by passing resolutions and partnering with elected officials in their districts to provide financial literacy for communities across California.

You can click here to watch the SR 27 floor presentation. Limón recognized the great work of credit unions and specifically mentioned the Richard Myles Johnson (RMJ) Foundation “Bite of Reality” program.

The League would like thank Tena Lozano, executive director of the RMJ Foundation, for providing helpful financial literacy data in this effort.

PPP Funds Exhausted; Community Institution Funds Remain
Lenders providing Paycheck Protection Program (PPP) funds have begun to be informed by the U.S. Small Business Administration (SBA) that the program’s funds will expire roughly a month before the expected termination.

According to congressional offices and other reports, roughly $6 billion has been reserved for loans with hold-codes and another $8.6 billion remains for community institutions (such as community development financial institutions — CDFIs; or minority depository institutions — MDIs). These funds will remain until exhausted or until the program’s termination on May 31.

The SBA is also working to refine its loan forgiveness program, which it admits will take time given the degree of thoroughness and examination needed to counter potential fraud.

Lenders should be on the lookout for an announcement from the SBA, although nothing officially has been noted.

Latest Updates: California, Congress, and Regulatory Scene
In the California Credit Union League’s latest Advocacy Newsletter, credit union leaders throughout the state can get up to speed on state government affairs, special elections, the recall effort, federal/congressional government affairs, and state and federal regulatory advocacy.

Pin It