Millions of Americans tune into the daily press briefings presented by the Coronavirus Task Force. Those briefings often include information regarding the various economic stimulus measures presented by Treasury Secretary Steven Mnuchin. This includes updates on the Payroll Protection Program (PPP), which provides Small Business Administration (SBA) loans to businesses that retain their employees on their payrolls. The funds are provided to the SBA through the stimulus program, and business lenders then make the loans with an SBA guarantee.
During Sec. Mnuchin’s updates on the program, he frequently credits the efforts of community banks in getting the loans out. (He has already gone back to Congress to replenish the program with additional funding due to the strong demand, which has depleted the amount originally allocated.) He has also mentioned several large banks. However, absent from these updates is any mention of credit unions and the tremendous support they lend to these programs.
This oversight is likely unintentional. As of year-end 2019, roughly a quarter of federally insured credit unions that held commercial loans held loans guaranteed by the SBA, making them a significant group of recipients under the program. Several of Rochdale Paragon’s clients are among that group and have reported that they are working hard to provide this much-needed assistance to small businesses in their community that have been devastated by the COVID-19 crisis.
This environment presents a unique marketing opportunity for credit unions. For credit unions that are participating in the PPP program, this is an opportunity to ensure that your members and the local media are aware of your important efforts. It’s critical to share the role credit unions play in providing key lending opportunities during this time of national crisis by leveraging the trusted relationships you hold with each of your members.
Your members and communities are struggling right now, so messages of help and hope are needed now more than ever. At the same time, this is an opportunity to contact the NCUA, CUNA and your representatives in Congress to ensure that the Treasury Department is aware of credit unions’ role in the fight against the economic destruction that has resulted from the coronavirus outbreak. Additionally, Rochdale Paragon is leveraging every available avenue to highlight the efforts credit unions are making towards ensuring access to these programs as a result of the current pandemic.
Nearly all of America is listening, and credit unions have an important story to tell. We encourage credit unions to spread the news that, along with health care professionals, first responders and supply chain workers, America’s credit unions are on the front line in the fight against COVID-19.
Contact us today for more information or other ideas on ways to highlight the credit union industry’s tremendous positive community impact as we all work together to fight the challenges we face during the current pandemic crisis.