Many businesses are likely to apply for the relief being funneled through the Small Business Administration as part of the recently passed CARES Act. To help community banks understand these new loans, ICBSD Preferred Partner Eide Bailly created an FAQ to address common questions, including:
What programs are available to our small business customers?
How do I know what is the right relief for my customers?
What should we do to become an SBA approved lender?
What are the characteristics of the loans issued under the paycheck protection program?
What are the underwriting requirements of paycheck protection program loans?
How does loan forgiveness work?
Do banks receive origination/servicing fees for making loans under the paycheck protection program?
What information will my customer need for the application process?
How will finding paycheck protection program loans impact bank liquidity?
What other items should a financial institution be considering?