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As the Small Business Administration (SBA) released an interim final rule to implement the $349 billion paycheck protection program created under the CARES Act, NAFCU answered FAQs on the program and what it means 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.

In addition to releasing the interim final rule, the SBA also updated its website with more information on the program.

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); see Question 11 for details on how to apply for an EIDL. Other answers address:

• what paycheck protection loans can be used for (see Question 1 and Question 2);
• terms of the loans (see Question 3);
• who is eligible to apply (see Question 4 and Question 11);
• who are eligible lenders, including how to apply to offer loans if not already an SBA-approved lender (see Question 5, Question 10, and Question 12);
• loan forgiveness (see Question 6);
• ability to apply for other emergency coronavirus loans (see Question 7 and Question 20);
• who can act as agents (see Question 13);
• underwriting requirements (see Question 14);
• what documents lenders need to provide SBA for loan applications (see Question 15);
• how to determine a borrower's eligibility (see Question 16);
• what documents lenders need to provide for loan forgiveness requests (see Question 17); and
• if any fees are owed to SBA (see Question 18).

Additional questions related to borrowers are also addressed in NAFCU's FAQs. The association also sent a Final Regulation Alert to member credit unions detailing the interim final rule.

The application period for small businesses opened Friday; independent contractors, self-employed individuals, and sole proprietors can begin applying April 10. Loans will be given out on a first-come, first-serve basis. SBA Administrator Jovita Carranza is posting updates on the amount of loan applications received on Twitter. By Friday evening, applications for almost 10,000 loans valued at $3.2 billion had been processed.

NAFCU will continue to seek more guidance from the SBA and Treasury to ensure credit unions can efficiently process loan applications and become SBA-approved lenders if not already certified. In a message to credit unions Friday, NAFCU President and CEO Dan Berger encouraged lenders to let NAFCU know if they encounter any problems and to continue to engage with the association as additional relief efforts are pursued.

Access all NAFCU's coronavirus resources here.