The CARES Act, introduced by Congress in March in response to the financial hardships incurred as a result of the current pandemic, was created in part to provide funds to small businesses. The Paycheck Protection Program (PPP) is one that credit unions can participate in as of way of helping business members.
The PPP loans are run through the Small Business Administration (SBA) and began Friday, April 3rd. This program will provide small businesses with funds to pay up to 8 weeks of payroll costs including benefits. Funds can also be used to pay interest on mortgages, rent, and utilities.
These loans will be fully forgiven at the discretion of the SBA when used for payroll costs, interest on mortgages, rent, and utilities. Loan payments will also be deferred for six months. No collateral or personal guarantees are required. No fees will be charged for these loans.
Where can I find more information?