Lucro's operational status

Considering the current nationwide outbreak of the coronavirus (COVID-19), we would like to provide an update on our operational status.

Currently, Lucro is fully operational. However, 100% of our staff is ready to work remotely if the situation warrants. Should we work remotely you may experience slight delays in our normal target delivery times; however, at this time we do not foresee any extended delays or shutdown.

If our situation changes we will notify via email, social media (Follow us on Facebook and LinkedIn), and update this webpage. If you have any questions or concerns please contact us.

What we're doing to help

Lucro recognizes that COVID-19 will impact our lenders and their members to varying degrees. We want to assure you that Lucro is working diligently to address the situation and provide guidance as we all work through unprecedented times. We understand it is important for our lenders to be able to continue to meet the financial needs of their members as these efforts may contribute to the strength and recovery of their community.

SBA - Paycheck Protection Program (PPP)

While we continue to await final rulings on how these loans will be administered we have received the following information and documents. 

Who is eligible to lend? All existing SBA-certified lenders will be given delegated authority to speedily process PPP loans. All federally insured depository institutions, federally insured credit unions, and Farm Credit System institutions are eligible to participate in this program.

PPP Documents as of 3/31:

Stay tuned for further updates and guidance. 

Modification Reviews

Many of you have indicated that members are requesting rate reductions. At this time, we do not expect a lot of aggressive competition from banks as we suspect most banks are inwardly focused on modifying and restructuring their current portfolio and avoiding taking on new risks. As a result, there is less urgency to lower rates.

Instead, we suggest focusing on relief options as it relates to each individual borrower’s situation and business type. Lenders should meet with affected borrowers and document their plans on the Borrower Questionnaire.

Based on individual circumstances options may include payment deferment or interest-only payments for 3-6 months.

To help you facilitate relief efforts, Lucro is offering a Modification Review for lenders who want to formally document their files. The Modification Review will concentrate on business and personal credit scores, liquidity and the answers to the attached questions. We will strive to turn these Modification Reviews around within 24 hours at the same cost as a payment/score review.

Short-form Modifications

To help our Partners effectively serve their commercial members, Lucro will prepare short form modifications on loans originally documented by Lucro at no charge through the end of June.  You may also choose to use the short-term modification forms internally and without Lucro assistance.

Short-form modification options:

  1. INTEREST ONLY:
    • Mortgage loans
    • Non-Real Estate loans
    • Unsecured loans
  2. DEFERRED PAYMENTS:
    • Mortgage loans
    • Non-Real Estate loans
    • Unsecured loans

This service is provided as a convenience for Partners. Lucro is not a provider of legal services, therefore it is important for each of you to have your legal counsel review the forms for compliance and suitability for your unique jurisdictions.

Lucro does not recommend the use of these short-form modification agreements for larger/complex loans or to change maturity dates.  Our standard Wolters Kluwer modification documents are more suitable for larger exposures and date changes.

If Lucro is preparing the modification, complete and sign the document request form and submit the completed form through the Lucro eVault via “OTHER” Requested Services. Please select the “COVID Document Mod Request” option. 

Please contact Diana Knight with any questions regarding this service. Email Diana@Lucro.org or call 888.627.7881 Ext. 4078. 

NCUA Guidance

NCUA has provided new guidance concerning efforts of credit unions in adjusting or altering terms on existing loans during this pandemic. The NCUA has advised that “prudent efforts to adjust or alter terms on existing loans in affected areas will not be subject to examiner criticism”. In addition, the NCUA states that easing terms for new loans to affected borrowers where prudent may help business members deal with any impact on their cash flows due to COVID-19.

As always, Lucro is committed to assisting our partners during this difficult time. If you have any questions or concerns, please contact us.

List of Resources and Documents: