NAFCU Journal May June 2021

THE NAFCU JOURNAL May–June 2021 17 loan department was busy throughout 2020—in addi- tion to PPP loans, we also handled $40 million in other commercial loans, as well as other small business and real estate loans,” she says. Stepping up to Meet Demand Even credit unions with an existing commercial lending department had to make some quick changes to handle the volume of PPP loan applications. At Hudson Valley Credit Union, about 100 commercial loans are handled each year. In the first few weeks of the PPP program, the credit union received 600 loan applications. “At first, we were handling hard copies of applica- tions and pulling people from other departments to help—more than 20 employees at one time,” says Vicki Batten, assistant vice president of business services for Hudson Valley. Although the credit union had an online platform for business loan applications, it needed to be quickly built out to accommodate the new PPP format. “Until that was completed, the painful paper route was coupled with efforts to train people who had not previously worked with business loans to help complete the process.” The challenge was exacerbated by the ongoing PPP rules and application form changes, she adds. Efforts were successful with a total of nearly 900 loans in the first round, totaling $34 million. “The average loan was only $38,000, but for small business owners, that is a big loan that means a lot to keeping their We had never worked with the Small Business Administration (SBA) before, but they did a great job helping us get through the registration process so we could offer PPP loans and making sure we were able to access the portal. MIKE SHOCKLEY, VICE PRESIDENT OF LENDING FOR TRUE SKY CREDIT UNION Crisis Speeds Introduction of New Business Line It is widely acknowledged that the pandemic has sped up the adoption of many digital applications in daily life—e-commerce, food delivery, contactless payments, digital tours of rentals or homes for sale and even inspections of new construction. For True Sky Credit Union, the introduction of services to help small businesses was in the plans, but the opportunity to jumpstart the new business line with the PPP became the first, unanticipated step in business services. Starting a completely new product line or department in the midst of the confusion that existed in the early days of the PPP may seem like a surprising decision, but it made sense to members of the board of directors, says Sean Cahill, president and CEO of True Sky. “Our board members are committed to serving our members, and we saw a real need in our community,” he says. “We had members who contacted us when the financial institutions handling their business accounts would not handle PPP loans for them because they were too small.” “We will have a full commercial department by summer 2021,” says Cahill. “We will also offer a small business incubator program that provides shared space for entrepreneurs to meet with clients or customers and grow their business.” Offering PPP loans and establishing services for the small and micro-businesses in the area is only one part of the credit union’s commitment to the community, says Cahill. PPP loans were a natural part of the credit union’s umbrella “Stand True” program that helped members cope with COVID-19 by offering no- or low-interest personal loans. The credit union also made 15,000 wellness-check calls to members and adopted local restaurants. “Our board and our employees are passionate about serving our purpose, which is helping our community.” Sean Cahill, president and CEO of True Sky Credit Union