The Treasury and Small Business Administration should immediately provide guidance on how all financial institutions can participate in the Paycheck Protection Program (PPP) created by the CARES Act, wrote House Financial Services Committee Chairwoman Maxine Waters (D-Calif.). The letter echoes CUNA’s call for strong guidance on the program, which is scheduled to officially become active April 3.
“Given that your agencies have asked small businesses to reach out to their local depository institutions to see if they are participating and to begin applying this Friday, April 3, 2020, your agencies must take immediate action to ensure all lenders that want to participate have an efficient ability to do so,” Waters wrote.
The CARES Act funds the PPP at $349 billion for the SBA to make available funds for small businesses to secure up to eight weeks of payroll costs including benefits, as well as to pay interest on mortgages, rent and utilities.
The Treasury and SBA released several pages of information for borrowers and lenders Wednesday but leaves several questions unaddressed. CUNA continues to engage with both agencies for more detailed guidance before the program becomes active.