Credit unions serving small businesses with PPP loans
On the heels of an expansion of the President’s Small Business Administration (SBA) Paycheck Protection (PPP) Program for Small Businesses Joe biden, credit unions continue to pledge to help across the country. Learn more at https://www.paydaychampion.com/
Nationwide credit unions serve small businesses with PPP loans
More than 840 credit unions across the country are serving some of the smaller businesses trying to survive during this current round of PPPs and economic recovery—Facilitation of nearly 121,000 loans, or approximately $ 4.6 billion. The average loan size for U.S. credit unions is $ 37,699 (compared to the national average of $ 59,084 for all other types of lenders combined) and indicates that they provide an opportunity for businesses in serious need of funding. ‘a vital lifeline. A notable 16 percent of total PPP lenders are credit unions.
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We can cite two major examples – one in Nevada and one in California – of credit unions doing their part to help small businesses survive during this time of the pandemic.
Greater Commercial Lending – a wholly owned subsidiary of the Greater Nevada Credit Union, based in Carson City, has funded over 1,750 P3 applications through the SBA for a total of over $ 106.6 million; $ 34.6 million was allocated to businesses in his home state of Nevada.
“Greater Commercial Lending plans to keep our application process open until the new deadline or until funding runs out,” said Greater Nevada Credit Union President and CEO Wally Murray. “These times continue to be difficult for businesses to navigate the reopening process and recover from the economic damage caused by the pandemic. It is essential that this vital aid reaches homeowners who are struggling both for the livelihood of their companies and the financial well-being of their employees.
CARE Chest of Sierra Nevada, a non-profit organization, is among those assisted by Greater Commercial Lending.
PPP funds given to small businesses
“There is no reason not to apply,” said CEO Anne Schiller. “Once you receive the findings you can prove that you can use the loan the way it was supposed to be used and send all the proper paperwork, your loan is forgiven. It’s quick and easy. Greater Nevada was wonderful to work with and very responsive. ”
The Redwood Credit Union (RCU), based in Santa Rosa, Calif., Funded some 3,600 PPP loans for a total of $ 193 million, saving about 17,000 jobs. In the first phase of the paycheck protection program, 2,036 local businesses received PPP loans with help from the fund, for a total of $ 121 million. It is estimated that this saved over 9,100 jobs in North Bay. For this reason, S&P Global Market Intelligence ranked RCU as the # 1 credit union PPP lender in California in 2020.
During this second round, 1,560 new loan applications were submitted by RCU to the SBA for an amount of nearly $ 72 million in new PPP funds for small businesses. This saved around 7,900 jobs. In addition, around 64% of these loans are considered second-draw loans (meaning the company has already received a PPP loan in the first round).
One of the smallest loans made by the credit union was $ 125 for janitorial service. COVID has had a prolonged effect on the hospitality and tourism sectors, and since these are vital industries for the wine country of Napa and Sonoma, RCU’s support to these specific businesses through PPP was also essential for the wider regional economy.
“The PPP program is really just an extension of the way we serve businesses,” said Ron Felder, chief financial officer and risk manager for Redwood Credit Union. “We are not a service provider; we are a financial partner. Our mission is to passionately serve the best interests of our members, team members and the communities So it makes sense that we are all-in to help our members with PPP support when they need it most.