Members of NAFCU reported the overwhelming number of Paycheck Protection Program loans they processed went to small businesses that employed fewer than 10 workers.
A survey of NAFCU’s credit union members showed that 46% of the PPP loans they secured during the first and second rounds of funding went to small firms that employed fewer than 10 workers and 32% of the PPP loans went to the self-employed or sole proprietors. Only 2% of small businesses that employed 51 to 100 workers got PPP loans, according to the trade organization.
Survey respondents submitted 37 loan applications on average.
More than 40% of the trade organization’s credit union members said the PPP loan initiative has prompted a greater interest in other SBA lending opportunities such as the 7a or CDC/504 loan programs.
NAFCU did not reveal the number of credit union members who responded to the survey, though a spokesperson said it was a representative sample of the total membership.