August 10, 2020

NAFCU updates PPP FAQs as forgiveness process begins

CapitolFollowing the end of the Small Business Administration’s (SBA) paycheck protection program (PPP) – which is no longer accepting loan applications as of Aug. 8 – NAFCU has updated its FAQs on the program, including new questions regarding loan forgiveness and a new section on PPP fraud.

Of the questions added, several tackle issues related to loan forgiveness, such as:

  • what documentation is needed for lenders’ loan forgiveness requests (question 35);
  • what lenders need to do if they receive a notice that the SBA is reviewing a PPP loan (question 43);
  • the timeline in which lenders can submit forgiveness applications to the SBA (question 44);
  • the PPP Forgiveness Portal (question 45); and
  • whether an agent can submit a loan forgiveness application on a credit union’s behalf (question 46).

On PPP-related fraud, the association has included a question for lenders protocols in place if they suspect fraud related to a program loan.

In addition to questions lenders might have, the association also updated questions that borrowers may have on the topic of what loan forgiveness application borrowers should use and when payroll and non-payroll costs must be incurred to be eligible for forgiveness.

View NAFCU’s PPP FAQs; access all of the association’s coronavirus resources here.

Relatedly, credit unions can also access the SBA’s recently released set of FAQs focused solely on forgiveness for program loans.

NAFCU continues to urge the SBA and Congress to simplify the loan forgiveness process for smaller loans and is fighting to have these provisions included in the Phase 4 coronavirus relief package. Stay tuned to NAFCU Today for the latest developments.