Last Updated : July 9, 2020
United Bank of Union is now accepting forgiveness applications for the Paycheck Protection Program (PPP) loans. At this time, the Small Business Administration has issued two different application options for forgiveness. Businesses will need to review these two forms and their instructions, listed below, to determine which application applies to them. Additionally, businesses will also need to decide whether they will elect for the 8-week forgiveness period or the 24-week forgiveness period. With both of these elections, businesses will submit the forgiveness application documents once all PPP loan proceeds have been used on eligible expenses, as outlined in the instructions below.
- PPP Forgiveness Application 3508 Instructions
- PPP Forgiveness Application 3508
- PPP Forgiveness Application 3508-EZ Instructions
- PPP Forgiveness Application 3508-EZ
on June 5, 2020, President Donald Trump signed into legislation the Paycheck Protection Program Flexibility Act. In summary, it addressed the following;
- The covered period during which the loan may be used for forgivable expenses was extended from 8 weeks to 24 weeks. Although, still using the 8 weeks period if possible is being recommended.
- The amount that must be spent on payroll costs has been decreased from 75% to 60%.
- This law replaces the six month period of deferred payments to the date that SBA pays the lender the amount of the loan forgiveness. Borrowers must apply for forgiveness within 10 months to avoid having to make principal and interest loan payments.
- It eliminates a provision that makes loan recipients who have PPP debt forgiven ineligible to defer payroll tax payments.
- It extends the period in which employers may rehire or eliminate a reduction in employment, salary, or wages that would otherwise reduce the forgivable amount of a PPP loan to December 31, 2020.
While we fully expect there to be additional regulations and guidance issued to lenders about the forgiveness process, it is our goal to keep our customers updated throughout the process.
Please remember to be keeping records and documentation of covered payroll, employee benefit, rent, utilities, and qualified loan interest expenses to be ready to submit when we are ready to begin accepting forgiveness applications.
If you should have any questions at this time regarding your PPP Loan, please contact your loan officer.
On March 27, 2020, the United States Congress and President Trump signed the Coronavirus Aid, Relief, and Economic Security Act (CARES Act). A large piece of this act contains help for small businesses across the nation in the form of the Paycheck Protection Program (PPP) Loans.
For more information as to how this impacts you as a business owner, please visit the SBA website here.
One of the most pressing needs is helping your business retain employees and keep your doors open. Here are some highlights of the Paycheck Protection Program (PPP):
- Starting on Friday, April 3, small businesses and sole proprietorships can apply and receive loans to cover their payroll and other certain expenses through United Bank of Union and other existing SBA lenders.
- Starting on Friday, April 10, independent contracts and self-employed individuals can apply and receive loans to cover their payroll and other certain expenses through United Bank of Union and other existing SBA lenders.