The Small Business Administration's Paycheck Protection Program (PPP) ensures that certain businesses, self-employed workers, sole proprietors, certain nonprofit organizations, and tribal businesses continue paying their workers.
The Paycheck Protection Program: Details
About 20% of PPP funding is earmarked for smaller credit unions, banks and community financial institutions for loans to underserved communities, including $15 billion for lending by CDFIs and $15 billion for insured depositories with assets of less than $10 billion.
Who is eligible? All existing SBA-certified lenders will have delegated authority to process PPP loans. All federally insured depository institutions and credit unions, if they have not applied, may participate when they apply and are approved and enrolled in the program.
As of January 2021, the Small Business Administration has launched the second round of applications for the PPP. There is $40 billion specifically earmarked for small businesses (fewer than 10 employees). The application deadline is March 31, 2021.
Credit unions are at the frontline to mitigate the economic impact of COVID-19 on their communities and members, including local businesses. The goal of the PPP is to offer additional financial support to businesses that continue to struggle from the pandemic’s economic effects. The latest PPP round offers funding for both first draw applicants (businesses that didn’t receive any funding in the first round) and second draw applicants (those that did receive previous PPP funding).
Credit unions, as PPP lenders, can help underinvested communities access these funds.
Inclusiv Helps Credit Unions
Learn about the benefits of Inclusiv membership, including free CDFI annual certification reporting (ACR) and eligibility analysis. Inclusiv membership is an essential investment in the future of your credit union and your community.
Inclusiv's consulting services helps credit unions of all types and sizes expand and improve their financial service offerings.
Learn about the PPP "gross income" to "net income" application form updates with these informative videos from the Empire Justice Center.
More about stimulus programs
Information about these programs are evolving. Inclusiv will share new information as it becomes available.