Tips from Lender*VP: What to Know About Small Business Administration Assistance

  • Do you have business members?
  • Do you do business lending?
  • Are you an approved SBA lender today?

If none of the above apply, feel free to move on with your day.

However, if any of the above DO apply to your credit union, read on to learn about Small Business Administration Assistance:

As you may already be aware, the CARES Act provides funds for small businesses during this current pandemic.  The Paycheck Protection Program (PPP), is one program that credit unions can participate in as of way of helping business members.

The PPP loans are run through the SBA and begin Friday, April  3rd, 2020.  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.  Additional information on eligibility and exclusory criteria can be found in the link below.

Where can I find more information?

More detail on the PPP loans can be found here.  Additionally, a general guide small business guidance and summary of loan related resources can be found here.

How do we set these loans up in CU*BASE?

For questions on CU*BASE GOLD configurations, please contact lendervp@cuanswers.com