PPP Loan Forgiveness
If your PPP Loan was $100 to $150,000
| Step 1 | Complete the SBA PPP Forgiveness application. Note: Form 3508S is used for both First Draw PPP Loan and Second Draw PPP Loan forgiveness applications. You cannot use one form to apply for forgiveness of both a First Draw PPP Loan and a Second Draw PPP Loan. | Form 3508S & Instructions | |
| Step 2 | Gather the required supporting documents to be submitted to the Bank with your application. A summary can be found using the following link: Form 3508S – Required Documents | ||
| Step 3 | Submit your application and supporting documents to your Union Bank Lender. Documents can be accepted via email or in person. | ||
| Step 4 | The Borrower is required by the SBA to retain all employment records/payroll documentation in its files for 4 years and all other documentation for 3 years after the date. 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. | ||
| Step 5 | Once we receive your complete application, we will notify you when we have submitted our forgiveness recommendation to the SBA. | ||
| Step 6 | The SBA will have 90 days from when we submit your application to make a final decision on forgiveness. | ||
| Step 7 | 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. | ||
If your PPP loan is greater than $150,000
| Step 1 | Determine which forgiveness application you are required to submit. If you can check at least one of the two boxes below, complete SBA Form 3508EZ. If you cannot check at least one of the boxes below, you are required to use Form 3508. ☐ The Borrower 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. (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.
--------------------------------------------------------------------- ☐ The Borrower 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. (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 3508EZ & Instructions Form 3508 & Instructions |
| Step 2 | Complete the appropriate application as identified in Step 1. | Form 3508EZ & Instructions Form 3508 & Instructions |
| 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 such documentation in its files for 6 years after the date the loan is forgiven or repaid in full. 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. | |
| 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. |