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Paycheck Protection Program

The Paycheck Protection Program (PPP) is a part of the CARES Act and is a loan designed to provide a direct incentive for small businesses (generally less than 500 employees, including sole proprietorships, independent contractors and self-employed persons) to keep their workers on the payroll. The SBA will forgive loans if all employees are kept on the payroll for 8 weeks and the money is used for payroll, rent, mortgage interest or utilities. All federally insured credit unions are eligible to be a lender for this program, which has minimal underwriting requirements. Credit unions that are already SBA-certified lenders will immediately have the authority to process PPP loans. Credit unions interested in providing these loans to their members who are not already SBA lenders will need to submit applications and apply to the SBA. Lenders can begin processing applications on April 3, 2020 and the program will be available through June 30, 2020 or until funds are no longer available.

Print Model Policies and Procedures

Paycheck Protection Program: Model Policies and Procedures

Model Policies

The following policy from CU PolicyPro can be used to help you craft your own policy on this topic:

We recommend reviewing your own policies to see if this policy or similar policies have already been customized and are in use by your credit union. If you're not sure if your credit union subscribes to CU PolicyPro, contact policysupport@cusolutionsgroup.com for assistance.

Sample Procedures

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