The Small Business Administration (SBA) published an Interim Final Rule Thursday, effective immediately, announcing the implementation of Sections 1102 and 1106 of the CARES Act. These sections address the “Paycheck Protection Program,” (PPP) a new product in the SBA’s 7(a) Loan Program.
“Credit unions are eager to serve their members and communities, and they want to help small businesses succeed through the SBA’s Paycheck Protection Program,” said CUNA President/CEO Jim Nussle. “The CARES Act was enacted less than a week ago and there have been a number of questions regarding the expectations for lenders under this program to be able to help numerous businesses weather financial challenges due to the growing and ongoing public health crisis. We appreciate the guidance that has been published this evening, and we are reviewing it closely.
“Nevertheless, the guidance was released hours before this program is set to begin and there are still a number of unanswered questions which will very likely complicate quick fulfillment of these critical loans,” Nussle added. “Credit unions will now begin the complex task of successfully implementing a $350 billion rescue program from the ground up, and we’ll be working tirelessly to do so.”
CUNA and Leagues look forward to working with credit unions and SBA so consumers can receive these loans expeditiously from their credit union.
Highlights of the guidance include:
Additional information, including on lender’s fees, loan terms and conditions and more can be found on CUNA’s CompBlog.