CARES Act: What Credit Unions Need to Know
March 31, 2020
Last week, the CARES Act, a $2 trillion stimulus bill, was signed into law to provide economic relief to individuals and businesses impacted but the coronavirus pandemic. The Northwest Credit Union Association’s Compliance Team analyzed the Act and created a comprehensive summary and analysis for member credit unions.
The summary includes information on the following topics:
- Economic stabilization and assistance to severely distressed sectors of the U.S. economy
- Unemployment assistance, business provisions, and health plan and labor provisions
- Keeping workers paid
- Retirement savings plan provisions
- Recovery rebates
The Association is also closely tracking updates regarding Small Business Administration funding. There are currently two programs businesses can seek relief through:
- Paycheck Protection Program – This new program is authorized as part of the CARES Act. The Paycheck Protection Program allows credit unions and other insured lenders to issue Paycheck Protection Loans, which are backed by SBA under section 7(a) of the Small Business Act. The CARES Act modifies the SBA guarantee of loans made under the Paycheck Protection Program to 100%. The provisions create a “covered period,” which began on Feb. 15, and ends on June 30. Guidance on how to offer or apply for these loans has not yet been issued by the SBA.
- Economic Injury Disaster Loans – This is the existing program that SBA offers. Businesses can apply today. More information can be found here.
As more legislation is proposed, the Association is focused on keeping unions’ best interests top-of-mind.
If you have questions about the Coronavirus Aid, Relief, and Economic Security Act, contact NWCUA’s Compliance Team at 800.546.4465.
Posted in Public Awareness.