Hal Scoggins Quoted in Article on Credit Unions and the Demand of the PPP Through the SBA
Hal Scoggins was quoted in the Credit Union Journal
April 24, 2020 issue regarding credit unions and the demand of the Paycheck Protection Program (PPP) through the Small Business Administration (SBA).
“It's likely that there are institutions that have decided it isn’t worth the investment to offer SBA loans, including participating in PPP,” said Hal Scoggins.
“My guess is credit unions see other greater opportunities that don’t require the same investment of sweat equity that SBA lending requires,” Scoggins said. “There is an element of you really have to be an accomplished dance partner in order to successfully dance with the SBA.”
“If [SBA] sees a credit union didn’t dot an i or cross a t on some aspect of servicing or collecting the loan, they will try to take advantage of that,” Scoggins said. “That’s the perception I’ve heard from more than one source. …Personally my view is there will be a lot of pressure, including from Congress, for the SBA not to do that.”
Hal has been providing legal advice to credit unions since 1991, focusing on state and federal regulatory compliance, deposit and lending operations, contract and business matters, corporate governance, CUSOs, and all other aspects of financial service delivery. He frequently conducts seminars on legal matters for the Northwest Credit Union Association, Credit Union National Association councils, local chapters, and other trade groups.
For questions regarding the PPP, please contact Hal Scoggins
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