'Powerful' Numbers Show Virus-Era Lending, Aid From Michigan Credit Unions
The Michigan Credit Union League reports that 10% of PPP loan recipients were new credit union members.
Credit unions in Michigan helped more than 10,400 small businesses obtain $600 million in virus-era Paycheck Protection Program loans, according to a new quarterly report from the Michigan Credit Union League.
Ten percent of PPP loan recipients were new credit union members, MCUL said. The median size of the loan was about $20,000. MCUL said an estimated 14,000 homeowners who owed nearly $2 billion in mortgage loans have received assistance through payment delays, and foreclosures were postponed for more than 300 homeowners.
Michigan credit unions provided $22.5 million in emergency loans, MCUL said, and $800 million in modifications to auto and consumer loans. Credit unions in the state reported more than 250,000 authorized skipped payments, totaling more than $1 billion in payment delays based on the financial hardships of members.
“These numbers are very powerful and speak to the overwhelming impact our not-for-profit movement has on the lives of millions of Michiganders,” MCUL CEO Dave Adams said in a statement. “Once again, we showed that when a crisis hits, you can always turn to your local credit union. Even outside of these product and service offerings, we have seen credit unions go to great lengths to make sure many of their members’ needs are met, financial and otherwise.”
On the PPP loan front, MCUL said one in 10 small businesses that received coronavirus relief from a credit union in Michigan had been turned away by other lenders. Dozens of credit unions across the state were PPP lenders.
Recently released federal data showed credit unions, overall, disbursed $9.6 billion in PPP loans. More than 900 credit unions issued nearly 200,000 PPP loans supporting 1.2 million jobs, according to the U.S. Small Business Administration. The average credit union loans during the first round of PPP amounted to $64,000, according to a CUNA report in late April.
MCUL said emergency cash loans for paying rent, groceries and other bills — estimated at $22.5 million — were made to more than 9,500 consumers in Michigan. Credit unions in the state saved members more than $9.5 million in hundreds of thousands of fee waivers, MCUL said.