SBA Statistics Provide Glimpse Into Credit Union PPP Participation  

June 9, 2020 at 9:16 am Leave a comment

Yours truly believes this is a crucial time for credit unions both large and small.  Pandemics come and go but legislators and the advocates who energize politics have long memories.  You can bet they are going to be asking if your credit union participated in the PPP.

The SBA released an updated breakdown of PPP lending through June 6th which provides at least a partial answer to this question.  For instance, it appears that the second round of the PPP has done a better job of getting smaller institutions involved in the program.  According to SBA statistics, as of June 6th, 721 credit unions with less than $1 billion in assets have made more than 57,000 loans worth close to $2.9 billion.  Unfortunately I can’t find any statistics breaking down the performance of credit unions with over $1 billion in assets.  It is also not clear to me if the credit union total includes CDFI credit unions.  Incidentally, CDFIs have made over 95,000 loans worth over $7 billion.

Looking at the big picture, California, Texas and New York companies lead the way in PPP loans and the lending program is being led by JPMorgan Chase which accounts for 4.3% of all loans being made.

If you look at the top 15 lenders, not surprisingly, the program is being dominated by larger regional banks many of which have an established comfort level with small business lending in general and SBA loans in particular.  Perhaps when things get back to the “new normal” one of the areas that can be examined is the perceived difficulty in making SBA loans and whether changes can be made to help credit unions and other small financial institutions develop a greater comfort level with the SBA.

When I say this type of thing to grizzled veterans they get a bemused look on their face and brace for me to start singing “kumbaya”.


Entry filed under: Advocacy, COVID-19. Tags: , , , .

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Authored By:

Henry Meier, Esq., Senior Vice President, General Counsel, New York Credit Union Association.

The views Henry expresses are Henry’s alone and do not necessarily reflect the views of the Association. In addition, although Henry strives to give his readers useful and accurate information on a broad range of subjects, many of which involve legal disputes, his views are not a substitute for legal advise from retained counsel.

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