As we move into the fall, two topics are trending to the top of the credit union discussion list:

1. The administration of Paycheck Protection Program (PPP) loan forgiveness
2. What this activity means for the allowance for loan loss

PPP lenders dealt with an ever-changing set of rules when issuing these loans in the spring. The late summer and fall have been spent waiting for the next change. Since July, Congress has been in talks about another COVID-19 relief bill but to no avail. Without legislation, what are lenders to do about the potential for additional changes to the PPP program?

In terms of the allowance for loan loss, lenders have granted an unprecedented amount of forbearance and other loan accommodations in 2020. As those forbearance agreements wind down this fall, will members be able to resume payments?

What you’ll learn:

• How credit unions are administering the PPP forgiveness process
• Other factors to considered related to credit risk as we prepare for year-end reporting and 2021 budgets