PPP 2nd Round

3/3/2021 UPDATE 

The SBA issued an interim final rule (IFR) implementing changes to the Paycheck Protection Program (PPP).  The IFR allows individuals who file an IRS Form 1040, Schedule C to calculate their maximum loan amount using gross income.  Previously, PPP rules defined payroll costs for individuals who file Form 1040, Schedule C as net profit (line 31), capped at $100,000, plus wages paid to employees (if applicable) by using line 5c from the quarterly IRS Form 941s plus pre-tax employee contributions for health insurance or other eligible fringe benefits, capped at $100,000 per employee.  Under the IFR, individuals who file a Schedule C can elect to calculate payroll costs one of two ways:

  • Based on the previous definition by using net income (line 31), capped at $100,000; plus wages paid to employees (if applicable) by using line 5c from the quarterly IRS Form 941s plus pre-tax employee contributions for health insurance or other eligible fringe benefits, capped at $100,000 per employee.  – OR – 
  • By using gross income (line 7) minus employee benefit programs (line 14), pension and profit sharing plans (line 19) and wages (line 26), capped at $100,000; plus wages paid to employees (if applicable) by using line 5c from the quarterly IRS Form 941s plus pre-tax employee contributions for health insurance or other eligible fringe benefits, capped at $100,000 per employee. 

A sole proprietor without employees could choose to use net income (line 31) or gross income (line 7), capped at $100,000.

Under the IFR, this calculation change will only apply to loans approved after the rule’s effective date of 3/3/2021.  Borrowers that have already had their loans approved cannot increase their PPP loan amounts based on the new maximum loan formula.

In addition, the IFR removes the restriction on businesses at least 20% owned by an individual who was arrested or convicted of a felony related to financial assistance fraud in the previous five years or any other felony within the previous year from obtaining PPP loans.  It also removes a restriction on businesses at least 20% owned by an individual who is delinquent on a student loan from receiving PPP loans.

New forms have been released and can be found below.

1ST TIME PPP BORROWERS

(YOU HAVE NOT PREVIOUSLY RECEIVED A PPP LOAN)

   
Borrowers who qualify can apply for a First Draw PPP loan Union Bank by following the instructions below.

Maximum Loan Amount:

Eligibility Calculation Period:

  • Can use 2020 or 2019 payroll; borrowers who are not self-employed (sole proprietors and independent contractors) can also use the 12-month period before the date on which the application is submitted.

  • Seasonal employers: Determine maximum loan amount by using the employer’s average monthly payroll for any 12-week period selected by the seasonal employer beginning February 15, 2019 and ending February 15, 2020.

  • New businesses: Determine maximum loan amount by using the employer’s average monthly payroll using the time period from January 1, 2020 to February 29, 2020.
Step 1Complete the PPP First Draw Borrower Application Form.
(Instructions can be found on pages 3-5 of the form.)

Form 2483
    All first time borrowers except Schedule C filers who elect to use Gross Income for calculating their PPP loan amount should use Form 2483.

Form 2483-C
    Schedule C filers who elect to use Gross Income for calculating their first draw should use Form 2483-C.
Form 2483


Form 2483-C
Step 2Submit your application and required documentation to your Union Bank Loan Officer.

A summary of required documents can be found using the following link:

Required Documents for First Draw Loans
Step 3Once we verify your application is complete, we will submit your request to the SBA. Once they have approved the application and issued an SBA Loan Number, we will notify you.
Step 4We will disburse funds to your Union Bank checking account within 10 business days of the SBA approving your application and issuing an SBA Loan Number.

2ND DRAW PPP LOANS

(YOU PREVIOUSLY RECEIVED A PPP LOAN)

   
Borrowers who qualify can apply for a 2nd Draw PPP loan Union Bank by following the instructions below.
Maximum Loan Amount:

Eligibility Calculation Period:

  • Can use 2020 or 2019 payroll; borrowers who are not self-employed (sole proprietors and independent contractors) can also use the 12-month period before the date on which the application is submitted.

  • Seasonal employers: Determine maximum loan amount by using the employer’s average monthly payroll for any 12-week period selected by the seasonal employer beginning February 15, 2019 and ending February 15, 2020.

  • New businesses: Determine maximum loan amount by using the employer’s average monthly payroll using the time period from January 1, 2020 to February 29, 2020.
Step 1Complete the PPP 2nd Draw Borrower Application Form.
(Instructions can be found on pages 5-7 of the form.)

Form 2483-SD
    All second draw borrowers except Schedule C filers who elect to use Gross Income for calculating their PPP loan amount should use Form 2483-SD.

    Schedule C filers who elect to use Net Income instead of Gross Income for calculating their first draw should use Form 2483-SD.


Form 2483-SD-C
    Schedule C filers who elect to use Gross Income for calculating their first draw should use Form 2483-C.

Form 2483-SD

Form 2483-SD-C
Step 2Submit your application and required documentation to your Union Bank Loan Officer.

A summary of required documents can be found using the following link:
Required Documents for Second Draw Loans
Step 3Once we verify your application is complete, we will submit your request to the SBA. Once they have approved the application and issued an SBA Loan Number, we will notify you.
Step 4We will disburse funds to your Union Bank checking account within 10 business days of the SBA approving your application and issuing an SBA Loan Number.

PPP LOAN RESOURCES

 
SBA PAYCHECK PROTECTION PROGRAM (PPP) GENERAL INFO
PPP 1ST DRAW LOAN RESOURCES
PPP 2ND DRAW LOAN RESOURCES
PPP LOANS FREQUENTLY ASKED QUESTIONS