U.S. Small Business Administration Paycheck Protection Program
To provide financial relief during the pandemic, the federal government created the Paycheck Protection Program to help small businesses keep their workforce employed. The information below provides a broad overview of the program, which is administered by the U.S. Small Business Administration. For the most current program information, please visit the SBA site.
Important: If you get a call from an official-sounding government person/automated message claiming to verify your Paycheck Protection Program information, you can ask the questions below to determine if the call is legitimate. If they don’t already know this information, the call is a scam.
1. What was the loan application date?
2. How much money was applied for?
It’s a U.S. Small Business Administration (SBA) loan to help businesses keep their workers employed during the COVID-19 crisis. These loans may be forgivable, but we recommend you review SBA guidelines for eligibility.
Ent Credit Union has not offered SBA 7(a) loans historically. Due to the fact that the government elected to use the SBA 7(a) loan channel as a way to distribute these PPP funds, we did not have the necessary infrastructure and the SBA “pre-approved lender” status to provide these loans in a timely manner to our large member base. We have historically utilized Newtek, the fourth largest SBA lender in the U.S., as our referral source for 7(a) loans. So we connected our members with Newtek for the PPP program.
It is anticipated that if new funds are allocated to PPP, they will be quickly loaned to the many businesses that applied during the first round and are already in the queue. This is why new member applications for Newtek are not being accepted. Please visit the SBA for a list of participating lenders.
As perspective, it’s been reported that the SBA has processed more than 14 years' worth of loans in less than two weeks. SBA PPP approved lenders have received an avalanche of applications and had little lead time and guidance from the government before the program was launched.
Newtek will contact you about beginning your PPP loan forgiveness request. Please continue to watch your inbox and monitor your spam folder for an email from Newtek. Loan forgiveness guidelines are available on the SBA site. Note: because Newtek is the PPP lender, Ent does not have status information, file access or influence on PPP loan forgiveness requests and decisions.