Encore Las Vegas Resort, March 29-April 1, 2021 Please mark your calendars and check our websiteat www.NACUSONetwork.com for event details.
3419 Via Lido, PMB #135, Newport Beach, CA 92663
SAVE THE DATE! March 29 – April 1, 2021
The Encore Resort in Las Vegas is open and they have taken extra precautionary measuresto make sure it’s safe for guests to enjoy their stay. We are excited as we start planning for our
2021 NACUSO Network Conference at the beautiful Encore Resort and really look forward to seeing
everyone in person. Please mark your calendars and check back soon for event details.
2021Nacuso-CUTimes-9.5x5.42.indd 1 9/28/20 10:02 AM cutimes.com | Credit Union Times | October 14, 2020 | 7
loans for small businesses. Theprogram was part of the CARESAct approved by Congress andsigned by President Trump onMarch 27, but details were sketchybefore the SBA started acceptingapplications from approved lenders on Friday, April 3.
GCL, like most lenders, plannedto start accepting applications thefollowing Monday, but Gilpin andhis bosses made an on-the-spotdecision to start taking applications by noon Friday after gettinga call from a distressed businessowner.
It was like turning on a fire hose.
GCL went from having about25 employees at the end of Marchto 125 workers in two weeks byborrowing employees from otherCUSOs whose workers might normally be working on, say, autoloans or commercial loans, whichdried up in the early weeks of thepandemic.
“It was definitely a labor of love
because we were so manual in the
process. It was 20- and 22-hour
days for us, seven days a week,” he
said. “Close to the end of the first
round, I had a contractor come to
my house, and we stayed up 48
hours straight inputting this.”
Another $320 billion was ap-
proved for PPP loans on April 24,
with the SBA to begin taking ap-
plications on April 27.
Gilpin said he spent those three
days before the second round
working with a software company
to automate the application pro-
cess, while GCL employees called
all the applicants who didn’t get
approved in the first round to tell
them their applications would be
“When we opened up the second round, we were able to get anauthorization every 10 minutes,”he said.
From April 3 through the endof PPP lending on Aug. 8, GCLhelped 5,901 businesses acrossthe country obtain $583 million inPPP loans supporting 61,000 jobs.That included more than $137million supporting 17,296 jobs at2,100 companies in Nevada – 25%of all PPP loans in Nevada.
Later in April, Gilpin turned toanother part of the CARES Act,which had earmarked $1 billionfor a USDA loan guarantee program. He helped write a white paper for the Rural Lenders Round-table outlining how the USDA’spandemic loan program couldwork to provide working capitalfor businesses struggling becauseof the pandemic.
The USDA adopted the recom-
mendations with additions of
its own by early July. The result-
ing USDA Business and Industry
CARES Act loans were designed
to help rural businesses prevent,
prepare for or respond to the ef-
fects of the coronavirus pandem-
ic. The program provides a work-
ing capital line of credit drawn on
a monthly basis for 12 months,
based on the company’s monthly
“What we’re doing is stopping
the initial bleeding by providing
recapitalization for stabilization,”
he said. “We’re already seeing a
lot of recovery from most of these
Among the first round of re-
cipients was Eagle’s Catch, the
Iowa tilapia farm that GCL helped
launch in 2018.
With the first wave of shutdowns in March, its cash flowdwindled. Shipments came to ahalt for about a week while thecompany still had to maintainenough workers to keep the facility clean and the fish healthy.
Eagle’s Catch did get a PPP loan
of about $100,000 to $150,000 to
cover payroll. Another source of
help came from a USDA defer-
ment program. In the wake of the
pandemic, the USDA offered six
months of deferment of principal
and interest on any current loans
carrying a USDA guarantee. Ea-
gle’s Catch was able to use that
against its 2018 loan to preserve
more working capital.
Then the tide turned. Restau-
rants couldn’t get fish from China
because of supply chain disrup-
tions caused by the pandemic.
“Their only option was the nation’s largest tilapia farm,” Gilpinsaid. “They went from a completeshutdown to a rocket.”
But despite the help from thePPP loan and USDA deferments,strong fundamentals and greatprospects, Eagle’s Catch stillneeded cash.
Those conditions made it anideal target for a USDA pandemicloan. GCL brokered a $2.3 millionloan for Eagle’s Catch to increasecapacity and hire more workers.
This year, GCL has submittedmore than $300 million in CARESAct loans, supporting businessesthrough the crisis.
“It’s a side of COVID we don’thear about: This pandemic iskilling businesses that otherwise would be successful,” Gilpinsaid. n
‘It’s helping small,local credit unionsand community banksbolster their balancesheets so they cancontinue to provide theservices that these ruralcommunities desire. Wehelp them remain in thatcommunity and continueto be a vital part of thatcommunity.’