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Paycheck Protection Program

PPP Second Draw or First Draw Program

The COVID-19 relief bill was signed into law on December 27, 2020. This law includes another round of PPP loans* called the PPP Second Draw Program*. It provides an opportunity for small businesses to apply for a second PPP forgivable loan, but also another chance for businesses who did not participate in the first round, to now take part.
 
As the Small Business Administration (SBA) continues to work on issuing banks the necessary guidance, rules and official forms to process PPP applications, we are now able to accept applications to begin the review process with UniBank.
 
Here are some key details of what you can expect with this proposed second round of PPP:

Applicant Eligibility (Second Draw) 
  • Employ not more than 300 employees;
  • Have used or will use the full amount of their first PPP; and
  • Demonstrate at least a 25% reduction in revenue in any quarter of 2020 relative to the same 2019 quarter.
  • Borrowers may receive a loan amount of up to 2.5X the average monthly payroll costs in the one year prior to the loan or calendar year 2019 or 2020.
  • Entities in industries assigned to NAICS code 72 (Accommodation and Food Services) may receive loans of up to 3.5X average monthly payroll costs.
  • No loan can be greater than $2 million.
  • Must have been in business as of February 15, 2020.
  • Other terms and conditions may apply.

Applicant Eligibility (First Draw) 
  • Employ not more than 500 employees;
  • Borrowers may receive a loan amount of up to 2.5X the average monthly payroll costs in the one year prior to the loan or calendar year 2019 or 2020.
  • No loan can be greater than $10 million.
  • Must have been in business as of February 15, 2020.
  • Other terms and conditions may apply.
(For Either First Draw or Second Draw)
 
PLEASE NOTE: We encourage applicants to begin the process with UniBank. Loans submitted through this process will undergo UniBank's review process. Currently, we are awaiting further guidance from the SBA. We will process applications with the SBA once this guidance is issued. This means that final decisions will not be available until the process can be completed with the SBA. We appreciate your patience.
 
Loan Forgiveness
Borrowers of a PPP loan would be eligible for loan forgiveness equal to the sum of their payroll costs, as well as covered mortgage, rent, and utility payments, covered operations expenditures, covered property damage costs, covered supplier costs, and covered worker protection expenditures incurred during the covered period. The 60/40 cost allocation between payroll and non-payroll costs in order to receive full forgiveness will continue to apply.
 
* Terms and conditions apply. Subject to approval. Terms and Conditions may be subject to change. 

Preparing for Loan Forgiveness


Thank you for choosing UniBank to process and service your Paycheck Protection Program loan. We are proud to be able to assist you and our community during this difficult time.

Obtaining the loan is just the first step--while some outstanding questions remain when it comes to the loan forgiveness process, Congress recently clarified some of these in the Paycheck Protection Program Flexibility Act which it passed on June 5, 2020. Below we’ve included some new changes based on the PPP Flexibility Act and how you should go about submitting your loan forgiveness application to UniBank.


What is my loan forgiveness period?

 
If your loan was made before June 5, 2020:
You may choose between an 8-week or 24-week loan forgiveness period. If you do not give us notice of your preference, your loan forgiveness period will be 24 weeks after loan disbursement or December 31, 2020, whichever is earlier.

If your loan was made on or after June 5, 2020:
Your loan forgiveness period is 24 weeks after your loan was disbursed or December 31, 2020, whichever of the two is earlier.


What can I use my PPP loan funds for?


Only the following uses of loan funds are eligible for forgiveness:

  • Payroll—salary, wage, vacation, parental, family, medical, or sick leave, health benefits;
  • Business Mortgage interest—as long as the mortgage was signed before February 15, 2020;
  • Business Rent —as long as the agreement was in effect before February 15, 2020; and
  • Business Utilities—as long as service began before February 15, 2020.

For full loan forgiveness, at least 60% of loan proceeds must be used for payroll costs. This means that no more than 40% of loan proceeds may be used for the other three purposes—business mortgage interest, business rent, and business utilities.


How do I submit my loan forgiveness application?


A successful forgiveness application is going to require good recordkeeping and bookkeeping in order to maximize your loan forgiveness amount. Keep diligent track of all eligible expenses and their accompanying documentation for your covered forgiveness period. We recommend that you contact your tax advisor, legal counsel, and/or bookkeeping service for assistance if necessary.

After the end of your loan forgiveness period, submit all of the following (as applicable) to UniBank by utilizing the PPP Forgiveness Portal so that we can begin processing your loan forgiveness application. To access the portal, copy and paste this link https://forms.onlineaccountaccess.com/secure1/forgive/unibankforsavings/ into your browser or click this button:

You will need the following to log into the portal;

  • Business TIN (EIN/SSN)
  • SBA Loan Number (Located on the loan note)
  • Loan Amount (Located on the loan note)
Along with completing the online application, you will need to upload one or more supporting documents verifying the eligible cash compensation and non-cash benefit payments from the Covered Period or the Alternative Payroll Covered Period and documentation verifying existence of the obligations/services prior to February 15, 2020.

  1. Payroll documentation—Documents verifying eligible cash compensation and non-cash benefits consisting of the following: 
    • Payroll reports or account statements documenting the cash compensation paid to employees;
    • Payroll tax filings (typically IRS Form 941);
    • Income, payroll, and unemployment insurance filings to your State; and
      Receipts, cancelled checks, or statements for any employer contributions to employee health insurance and retirement plans that you included in PPP Schedule A, lines 6 and 7.
  2. Nonpayroll documentation—Documents verifying that the following items existed prior to February 15, 2020 and that eligible payments were made during the covered forgiveness period. Payments can be documented using receipts, cancelled checks, and/or account statements.
    1. Business Mortgage interest—copy of lender amortization schedule and payment documentation during covered period.
    2. Business Rent —copy of current lease agreement and payment documentation during covered period.
    3. Business Utilities——copy of invoices from February 2020 and those paid during the covered
  3. Employee documentation—Documentation showing the average number of FTE employees for the time period you selected in line 11 of PPP Schedule A. Documents may include payroll tax filings on IRS Form 941, state quarterly business and individual employee wage reporting and unemployment insurance tax filings reported to your State. Documents may cover periods longer than the time period you selected.
NOTE: You must retain all other PPP documentation in your files for six (6) years after the date the loan is forgiven or repaid in full, and allow authorized representatives of SBA or the Office of Inspector General to access these files upon request.

Once we receive your completed Loan Forgiveness Application and supporting documentation, UniBank will thoroughly review them under the existing laws, regulations, and guidance. We will review the documentation and submit to the SBA for their decision on whether the loan will be 100% forgiven or a partial forgiveness. When the SBA has given us a final decision, we will inform you. Keep in mind, the SBA may begin an audit of any PPP loan of any size at any time, subject to its sole discretion.

Any outstanding balance on your PPP loan which is not forgiven will continue to accrue interest at 1% for the remainder of the loan term. There is no prepayment penalty and you can pay off that outstanding balance at any time without incurring any additional fees. Please refer to your PPP Loan Note for additional terms and conditions.

For additional information, please refer to the U.S. Department of the Treasury’s CARES Act Assistance for Small Businesses webpage and U.S. Small Business Administration’s Paycheck Protection Program webpage.

UniBank is here to assist you with your PPP loan should you have any other questions. Please contact your relationship manager or call us at 800.578.4270 with any questions. 

* Terms and conditions apply. Subject to approval. Terms and Conditions may be subject to change. 

The Small Business Administration and the Department of Treasury continue to provide additional guidance concerning the Paycheck Protection Program. Thus, UniBank makes no representation that information contained herein is up to date or complete. Before submitting a request for loan forgiveness, borrowers may wish to visit the SBA, U.S. Treasury Assistance for Small Businesses and U.S. Treasury FAQ websites for the latest information and guidance related to the Paycheck Protection Program.