PPP Loan Forgiveness
If your PPP Loan was less than $150,000
No action is required at this time. We are awaiting guidance from the SBA on a streamlined forgiveness process for borrowers whose PPP loan was less than $150,000.
If your PPP loan is $150,000 or greater
| Step 1 | Determine which forgiveness application you are required to submit. If you answered Yes to any of the questions below, you are eligible to use Form 3508EZ. If you answered No to all of the questions below, you are required to use Form 3508. ☐ The Borrower is a self-employed individual, independent contractor, or sole proprietor who had no employees at the time of the PPP loan application and did not include any employee salaries in the computation of average monthly payroll in the Borrower Application Form (SBA Form 2483). --------------------------------------------------------------------- ☐ The Borrower did not reduce annual salary or hourly wages of any employee by more than 25 percent during the Covered Period or the Alternative Payroll Covered Period (as defined below) compared to the period between January 1, 2020 and March 31, 2020 (for purposes of this statement, “employees” means only those employees that did not receive, during any single period during 2019, wages or salary at an annualized rate of pay in an amount more than $100,000); AND The Borrower 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. (Ignore reductions that arose from an inability to rehire individuals who were employees on February 15, 2020 if the Borrower was unable to hire similarly qualified employees for unfilled positions on or before December 31, 2020. Also, ignore reductions in an employee’s hours that the Borrower offered to restore and the employee refused. See 85 FR 33004, 33007 (June 1, 2020) for more details. --------------------------------------------------------------------- ☐ The Borrower did not reduce annual salary or hourly wages of any employee by more than 25 percent during the Covered Period or the Alternative Payroll Covered Period (as defined below) compared to the period between January 1, 2020 and March 31, 2020 (for purposes of this statement, “employees” means only those employees that did not receive, during any single period during 2019, wages or salary at an annualized rate of pay in an amount more than $100,000); AND The Borrower 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 December 31, 2020 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 of standards of sanitation, social distancing, or any other work or customer safety requirement related to COVID-19. | Form 3508EZExternal link opens in a new window Form 3508EZ InstructionsExternal link opens in a new window Form 3508External link opens in a new window Form 3508 InstructionsExternal link opens in a new window |
| Step 2 | Complete the appropriate application as identified in Step 1. | Form 3508EZExternal link opens in a new window Form 3508EZ InstructionsExternal link opens in a new window Form 3508External link opens in a new window Form 3508 InstructionsExternal link opens in a new window |
| Step 3 | Gather the required supporting documents to be submitted to the Bank with your application. A summary can be found using the following links: Form 3508EZ – Required Documents Form 3508 – Required Documents | |
| Step 4 | Submit your application and supporting documents to your Union Bank Lender. Documents can be accepted via email or in person. | |
| Step 5 | The Borrower is required by the SBA to retain all supporting documentation related to their forgiveness application for 6 years. In addition to the application and supporting documents we required you to submit to the Bank, there are additional documents you must maintain. Refer to the Forgiveness Application Instructions for further details related to the documents you must retain, but that are not required to submit with your application. Form 3508 InstructionsExternal link opens in a new window – page 6 Form 3508EZ InstructionsExternal link opens in a new window – page 4 | |
| Step 6 | Once we receive your complete application, we will notify you when we have submitted our forgiveness recommendation to the SBA. | |
| Step 7 | The SBA will have 90 days from when we submit your application to make a final decision on forgiveness. | |
| Step 8 | We will notify you once we receive the forgiveness funds from the SBA and will notify you of any unforgiven amounts for which you will be responsible. |