Billions Loaned Out in Single Day, CUs Struggling to Get Clarity: First Full Week of PPP Begins Today

WASHINGTON–Credit unions and other financial institutions spent the weekend sorting through a chaotic first day on Friday of the Paycheck Protection Program and are expecting more of the same today. 
Over the weekend news, media reports and small business owners used words such as “chaos,” “confusion,” “plagued with problems” and “frustration” to describe the Paycheck Protection Program (PPP), which was hurriedly put together following the passage of the $2-trillion CARES Act. 
The program offers loans of up to $10 million to companies that employ fewer than 500 people. Those loans are forgiven as long as the businesses meet certain conditions, such as using the majority of the funds to pay worker salaries for the eight weeks following the loan closing. 
Several vendors have already announced PPP platforms, more information on which appears below.
As CUToday.info reported here, CUNA, NAFCU, the Defense CU Council and others were all pressing the SBA for additional guidance and clarity as last week came to a close, including changing one rule that is preventing credit unions from being recipients of funds to cover their own payroll costs. CUs can only participate as lenders if they are SBA certified. 
Varying Reports on Loan Volume
According to the Treasury Department, $4.3-billion in loans (1.1% of the $359 billion available) were made to businesses on Friday to cover their payrolls, even though three of the biggest banks in the country—Citi, JPMorgan Chase and Wells Fargo—initially said they weren’t taking applications until the federal government provides more guidance on the Small Business Administration (SBA) program.
However, late on Friday Bank of America tweeted it had processed $6-billion in applications on day one.
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