PPPLF Advances to CUs Topped $410 Million at the End of May

Thru May 31, 16 credit unions received slightly more than $410 million in advances from the Federal Reserve's Paycheck Protection Program Liquidity Facility(PPPLF).

Current outstanding advances were almost $409.6 million.

The Federal Reserve disclosed the data on June 10th.

The Federal Reserve created the PPPLF to bolster the effectiveness of the Small Business Administration's Paycheck Protection Program (PPP).

The PPPLF extends credit to eligible financial institutions that originate PPP loans, taking the loans as collateral at face value.

Small Business Administration-qualified PPP lenders—both depository institutions and non-depository institutions—are eligible to borrow under the PPPLF.

The following tables list the credit unions with PPPLF advances and the current amount of aggregate outstanding advances.

Credit Unions Are Using PPPLF

Credit unions have availed themselves of the Federal Reserve's Paycheck Protection Program Liquidity Facility (PPPLF).

The Federal Reserve created the PPPLF to bolster the effectiveness of the Small Business Administration's Paycheck Protection Program (PPP).

The PPPLF extends credit to eligible financial institutions that originate PPP loans, taking the loans as collateral at face value.

Small Business Administration-qualified PPP lenders—both depository institutions and non-depository institutions—are eligible to borrow under the PPPLF.

On May 15, the Federal Reserve disclosed the name of the participants using the PPPLF, the amount borrowed, interest rate charged, and the value of collateral.

Credit unions using the PPPLF between April 16 and May 6 include:

• Potlatch No 1 Financial Credit Union (Lewiston, ID);
• Greater Nevada Credit Union (Carson City, NV);
• Carter Federal Credit Union (Springhill, LA);
• Aneca Federal Credit Union (Shreveport, LA);
• Elements Financial Credit Union (Indianapolis, IN);
• United Federal Credit Union (Saint Joseph, MI);
• Notre Dame Federal Credit Union (South Bend, IN);
• Capital Area Realtors Federal Credit Union (Rockville, MD);
• Noteworthy Federal Credit Union (Cleveland, OH);
• Self-Help Federal Credit Union (Durham, NC);
• Stepping Stones Community Federal Credit Union (Wilmington, DE); and
• Empire Financial Federal Credit Union (Bayside, NY).

The outstanding collateral from these credit unions was $119 million.

Community Banks View CUs as Primary Competitor for Consumer Loans

Community banks view credit unions as their primary competitor for consumer loans, according to a survey.

The survey was conducted by the Federal Reserve and the Conference of State Bank Supervisors.

The survey found that 41.3 percent of community banks stated that credit unions are currently their primary competitor for consumer loans. Survey respondents believe credit unions will in the future be their primary competitor for consumer loans (35.6 percent).

With regard to mortgage loans, 13.5 percent of community banks identified credit unions as their current primary competitor. In the future, 13 percent of community banks expect credit unions to be their primary competitor.

Only 5.5 percent of community banks view credit unions as a primary competitor for small business loans. However, the expectations is for competition from credit unions in small business lending to grow as 10.7 percent identified credit unions as their primary future competitors.

Only 3.3 percent of community banks identify credit unions as their primary competitor for commercial real estate loans. In the future, 6.9 percent of community banks believe credit unions will be their primary competitor for commercial real estate loans.

With regard to agricultural loans, banks don't view credit unions as a primary competitor in the present or the future.

Read the survey report.