Small Business Administration (SBA) Paycheck Protection Program Loan Forgiveness

We are now accepting SBA Paycheck Protection Program loan forgiveness requests from existing USB customers who have already received a PPP loan from us. This page may be updated with more information about the Forgiveness process should the SBA issue additional guidance.

USB RESPONSE TO SBA ANNOUNCEMENT – “SBA to Accept Direct Forgiveness Applications from PPP”. USB has a full team and is able to provide you with expert assistance and guidance, as well as process all PPP loan forgiveness applications, so we will not be accepting applications through the SBA portal. Please continue to submit your PPP Loan Forgiveness Application and all requested financial documents to us via our Secure Document Upload Area. This page details everything you need to do to request PPP Loan Forgiveness.

You can help us process your application quickly by providing both a completed application (including all required initials and signatures) AND the necessary supporting documents at the same time.

Once you submit your PPP loan forgiveness application, it will be reviewed for completeness. We will let you know if more information is required.

Once the Bank determines your application is complete, we will have up to 60 days to make a decision regarding your request for forgiveness and make a recommendation to the SBA. Please be aware, the SBA will have an additional 90 days after we make our recommendation to make a final decision on loan forgiveness. You can expect to receive ongoing communication from us throughout this part of the process, indicating the status of your application. Once the SBA informs us of their decision, you will be notified of the amount that is being forgiven, any outstanding balance that has not been forgiven and a due date for your first payment, if applicable.

As a reminder, forgiveness applications will be accepted from existing USB customers who have already received a PPP loan from the Bank. If you have not received a PPP loan from us, we advise you to contact your current financial institution for assistance.

Borrowers who have questions concerning eligible and ineligible expenses should consult their accountant or visit SBA.gov for more information on loan forgiveness.

The information below may change as a result of future legislative actions but here is some general information related to PPP forgiveness:

• Loan forgiveness is not automatic, you must request it through Union Savings Bank
• There is plenty of time to apply for forgiveness – you may do so at any time up until the maturity date of your loan. However, if you submit the loan forgiveness application within 10 months of the covered period of 24 weeks – known as the Deferral Period – you will not have to make any principal or interest payments on the loan
  • The Deferral Period ends on the earlier of (1) the date the SBA remits any forgiveness amounts to the Bank or determines the loan may not be eligible for forgiveness or (2) 10 months after the date the covered period expires
• The amount of loan forgiveness can be up to the full principal amount of the loan and any accrued interest
• You have a minimum of 8 weeks and a maximum of 24 weeks to spend your loan proceeds.
• At least 60% of PPP loan proceeds must be used for eligible payroll costs.
• Not more than 40% of the loan forgiveness amount may be for non-payroll costs like interest on mortgages, rent, utilities and other eligible expenses which were expanded under the Economic Aid Act. These additional expense categories (and any related restrictions) are listed in the SBA Forgiveness applications. Borrowers with questions concerning eligible expenses should consult their accountant or visit SBA.gov for more information on loan forgiveness.
• For 2nd Draw loans only: those borrowers that did not provide proof of revenue reduction at the time of loan origination must provide the information with the application for loan forgiveness.

The above information is provided for convenience.  Please consult with your accountant or visit SBA.gov for more information on loan forgiveness.

It is your obligation, as the borrower, to understand the SBA’s rules.

To apply for forgiveness, please follow these steps:

To request PPP loan forgiveness, you’ll need to provide and verify specific supporting documentation to Union Savings Bank.

Steps
1. Select the appropriate application
Review the three SBA PPP Loan Forgiveness Application types for specific details and choose the loan forgiveness application that is right for you. Once you determine which application best fits your situation, using the instructions specific to that application, complete the form and gather the required documents that you will need to submit with your application.

3508S form: This is a streamlined application for loans of $150,000 or less

3508EZ form: This application requires less documentation and fewer calculations than form 3508. You can use this form if your loan is greater than $150,000 and you meet one of the two criteria listed below:

• Did not reduce salary or wages for any employee by more than 25% during the covered period compared to the most recent full quarter before the covered period AND did not reduce the number of employees or the average paid hours of employees between January 1, 2020, and the end of the covered period
• Did not reduce annual salary or hourly wages of any employee by more than 25 percent during the covered period compared to the most recent full quarter before the covered period AND was unable to operate during the covered period at the same level of business activity as before February 15, 2020, due to compliance with requirements established or guidance issued between March 1, 2020 and the end of the covered period, by the Secretary of Health and Human Services, the Director of the Centers for Disease Control and Prevention, or the Occupational Safety and Health Administration, related to the maintenance and standard of sanitation, social distancing, or any other work or customer safety requirement related to COVID-19

3508 form: This application is for borrowers that do not meet the criteria to use either form 3508S or 3508EZ

2. How to complete the application

• Open the application
• Save the blank form to your computer
• Fill in the form you saved to your computer
• Save that completed form again on your computer
• Return the completed form to us via the Secure Document Upload Area link which you can find at the bottom of this page

3. Submit your documents
Upload your completed application and all required documents to our secure server following the instructions provided below.

If you have questions, please contact your business lender, local branch manager or call us at 866.872.1866.

To upload your Paycheck Protection Program Loan Forgiveness application and supporting documentation please follow these instructions:

• Click on the login button below in the Secure Document Upload Area
• If you already have an account, great, continue to login
  • New users will need to create an account by hitting the ‘register’ button in the middle of the page
• Once you login, select the Compose tab and using the drop down menu in the “To” field select “Forgiveness Request PPP” from the options. Type the name of your business in the subject line and attach your application and supporting documents
• Hit the send button to submit your completed application and supporting documents
  • You will need to fully complete the application, including any required initials and signatures, then scan it, prior to uploading
  • If you want to save your work, hit the Save Draft button and come back later to upload your application and documents
• You’ll receive an automated reply confirming receipt of your email

We know you’ll be anxious to get a response. Please be assured we have a team dedicated to handling these applications and are moving as quickly as possible to take care of all of our customers. The best thing you can do is to make sure you have followed all the instructions outlined in the PPP Loan Forgiveness checklist and submitted all documents requested.

If you have questions, please contact your business lender, local branch manager or call us at 866.872.1866.