ARLINGTON, Va.—In conjunction with the release by the Small Business Administration (SBA) of an interim final rule to implement the $349 billion Paycheck Protection Program, NAFCU has published a series of FAQs on the program and what it mean for credit unions.
Previous guidance from the Treasury Department indicated all federally-insured credit unions will be able to offer loans under the program, but those that are not currently SBA-approved lenders must submit an application to become one.
NAFCU's FAQ document answers 22 questions. Of note, while credit unions are not qualified to apply for a loan under the paycheck protection program, credit unions can receive economic injury disaster loans (EIDLs).
Among the issues discussed in the FAQs:
- What paycheck protection loans can be used for
- Terms of the loans
- Who is eligible to apply
- Who are eligible lenders, including how to apply to offer loans if not already an SBA-approved lender
- Loan forgiveness
- Ability to apply for other emergency coronavirus loans
- Who can act as agents
- Underwriting requirements
- What documents lenders need to provide SBA for loan applications
- How to determine a borrower's eligibility
- Which documents lenders need to provide for loan forgiveness requests
- If any fees are owed to SBA
Additional questions related to borrowers are also addressed in NAFCU's FAQs. The application period for small businesses opened Friday; independent contractors, self-employed individuals, and sole proprietors can begin applying April 10.
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