WASHINGTON—As Congress continues to work on providing the Small Business Administration's (SBA) paycheck protection program with additional funding, the SBA has released additional guidance on the program along with notices aimed at equipping lenders with important information as they provide relief to borrowers amid the coronavirus pandemic.
NAFCU noted important information for credit unions highlighted in the Final Regulation Alert include:
- All FICUs must submit SBA Form 3506 to the agency for approval
- Lenders may rely on borrower certifications to determine eligibility and use of loan proceeds and may rely on documents submitted by the borrower to determine qualifying loan amount and eligibility for loan forgiveness
- Lenders are held harmless for a borrower’s failure to comply with the PPP’s criteria
- The SBA will pay lenders fees for processing loans in the following amounts: five percent for loans of not more than $350,000; three percent for loans of more than $350,000 and less than $2,000,000; and one percent for loans of at least $2,000,000
NAFCU is encouraging credit unions to provide comments on both interim rules by May 15 to NAFCU Regulatory Affairs Counsel Kaley Schafer via email at kschafer@nafcu.org.