Paycheck Protection Program (PPP) Loan Information
The Paycheck Protection Program is a loan designed to provide a direct incentive for small businesses, including sole proprietors and non-profits, to keep their workers on the payroll during the COVID-19 pandemic. The deadline to apply for a PPP loan passed on June 30th, 2020.
Union State Bank is currently unable to accept forgiveness applications at this time.
The U.S. Small Business Administration (SBA) has not issued final guidance for loan forgiveness processing. Borrowers will receive direct communication from Union State Bank once this information is available.
We would suggest that you review the applications to become familiar with the application process. We are estimating that based on the application instructions and the documentation requirements (IRS Form 941 and unemployment reports) that the earliest a borrower can complete the forgiveness applications for submission to the bank would be the middle of July 2020. As a reminder, USB has 60 days to submit completed applications to the SBA and incomplete applications cannot be accepted.
The SBA will forgive loans if all employee retention criteria are met and funds are used for eligible expenses. Forgiveness is based on the employer maintaining or quickly rehiring employees and maintaining salary levels. Forgiveness will be reduced if full-time headcount declines, or if salaries and wages decrease.
An "EZ" version of the forgiveness application that applies to borrowers that meet 1 of the following 3 criteria:
- Are self-employed and have no employees; OR
- Did not reduce the salaries or wages or their employees by more than 25%, and did not reduce the number or hours of their employees; OR
- Experienced reductions in business activity as a result of health directives related to COVID-19, and did not reduce the salaries or wages of their employees by more than 25%.
The EZ application requires fewer calculations and less documentation for eligible borrowers, which will result in a more efficient process and make it easier for businesses to realize full forgiveness of their PPP loan.
The Forgiveness Application must be COMPLETELY filled out prior to being accepted by a Union State Bank loan officer. Union State Bank cannot and does not warrant or guarantee approval or funding of any PPP loan or the forgiveness of any amount received by an applicant. If you have any questions, or need assistance in any way, please do not hesitate to contact us toll-free at 866.557.0060. Your local USB branches are also here to help. Find a complete listing of our officers here.
Now more than ever, we are Better Together.
Links are being provided as a convenience and for informational purposes only; they do not constitute an endorsement or an approval by Union State Bank of any of the products, services or opinions of the corporation or organization or individual. Union State Bank bears no responsibility for the accuracy, legality or content of the external site or for that of subsequent links. Contact the external site for answers to questions regarding its content.