SBA Payroll Protection Program
Thank you for allowing UCB to facilitate your Payroll Protection Program (PPP) Loan. We are honored to have secured close to $50 million dollars in funds for our Clients and our Communities. At this time, we are no longer accepting applications for additional PPP Loans.
As a recipient of funds, it is extremely important that you closely follow the guidelines outlined by the Treasury and SBA in order for your PPP loan to be forgiven. A representative from UCB will reach out to you periodically during the next few months to answer any questions you may have regarding the usage of PPP funds.
Currently, the Treasury is compiling new guidelines for the Forgiveness process. We suggest that you keep any and all documentation readily available regarding your usage of the PPP funds until the final guidance is provided. As soon as clear guidance is made available, we will reach out to you to get started.
Loan Forgiveness Q&A
What does loan forgiveness mean?
You, the borrower, may not be responsible for repayment of the loan if you use all the funds for forgivable expenses.
What expenses are eligible for forgiveness?
Your loan funds can be used for:
- Payroll, including benefits, to retain employees.
- Mortgage Interest payments for mortgages incurred prior to February 15, 2020. (max 40% of funds. See below)
- Rent Payments on leases dated before February 15, 2020. (max 40% of funds. See below)
- Utility payments under service agreements dated before February 15, 2020. (max 40% of funds. See below)
What else should I know about forgiveness?
In addition to using your loan funds on eligible expenses, follow the guidance below to maximize your potential loan forgiveness:
- Expenses must be incurred and paid within the 24-week period that begins on the date when you received your loan funds.
- No more than 40% of the loan amount can be attributed to non-payroll expenses (mortgage interest, rent, or utility payments)
- Retain existing full-time employee headcount.
- Maintain at least 75% of existing employee compensation levels.
What can you do now?
Keep track and document eligible expenses within the 24 week period after you received your loan funds. It will help with the forgiveness process.
Final guidance has not been given to banks on what will be needed by the SBA to prove eligibility for forgiveness, but we are currently working on building a process to accept forgiveness information once the final guidance is provided.
Who can I contact for assistance?
Our bankers are readily available to answer and questions you may have regarding your PPP Loan. You can contact us at 866.505.3736 for additional questions or concerns.