NWCUA Posts SBA Paycheck Protection Program Resources for Credit Unions
April 7, 2020
Last week, the Small Business Administration announced the Paycheck Protection Program (PPP), authorizing up to $349 billion in forgivable loans to small businesses so they may pay employees for up to eight weeks during the coronavirus pandemic. Funding became available on April 3, and SBA-designated financial institutions across the country and in the Northwest began taking applications.
The Senate is discussing this week adding a quarter trillion dollars to the program, possibly as early as this Thursday. U.S. Senator and Small Business Committee Chairman, Marco Rubio, estimates the program needs $200 to $250 billion. Senate Majority Leader, Mitch McConnell, is working with Minority Leader Chuck Schumer to include the additional funding. The number of financial institutions participating is expected to grow as additional credit unions are applying for SBA certification.
The Northwest Credit Union Association has compiled several helpful resources to answer questions credit unions may have about the program, which can be found on the Coronavirus Preparation & Response Resources page, including:
- Information on SBA form 3506 for new lenders
- Analysis of SBA’s interim rule for Paycheck Protection Program
- SBA Paycheck Protection Program Guidance
- SBA Paycheck Protection Program Loans Analysis
- Talking Points for Credit Unions Regarding the Paycheck Protection Program
In addition, credit union law firm, Farleigh Wada Witt, has offered to help credit unions by creating a PPP Promissory Note. More information can be found online here.
NWCUA’s COVID-19 Forums and Regional Huddles are excellent avenues for the latest news regarding credit unions’ operational practices, challenges, and solutions during COVID-19. Regular updates on SBA loans are provided during the meetings.
Posted in Public Awareness.