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SBA, Treasury release FAQs on Paycheck Protection Program

Credit unions have decision-making power over whether to participate in the Paycheck Protection Program (PPP), which authorizes up to $349 billion in forgivable loans to small businesses to pay their employees during the COVID-19 crisis. All loan terms will be the same for everyone.

The LSCU is currently compiling a list of  affiliated credit unions taking part in the program for our COVID-19 Resource Center. Here is an official Q&A document with helpful details: Paycheck-Protection-Program-Frequenty-Asked-Questions.

In addition, the US Senate said yesterday they want to move quickly to add $200-250 million to the PPP. For now, some items outlined include the below.

The loan amounts will be forgiven as long as:

  • The loan proceeds are used to cover payroll costs, and most mortgage interest, rent, and utility costs over the eight-week period after the loan is made; and
  • Employee and compensation levels are maintained.
  • Payroll costs are capped at $100,000 on an annualized basis for each employee. Due to likely high subscription, it is anticipated that not more than 25% of the forgiven amount may be for non-payroll costs.
  • Loan payments will be deferred for six months.
Written by
Cara Clark
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The League of Southeastern Credit Unions & Affiliates represents 342 credit unions in Alabama, Florida and Georgia, with a combined total of $118.63 billion in assets and more than 10.1 million members. LSCU & Affiliates provides legislative and regulatory advocacy; education and training; cooperative initiatives (including financial education outreach); public messaging; information services; and business solutions.

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