As a recipient of funds from a Payroll Protection Program (PPP) Loan, we want to update you on the progress and timeline associated with the forgiveness process. It is the goal of our UCB Bankers to ensure that 100% of our PPP borrowers receive all of the assistance and resources needed to successfully submit your forgiveness application.
At this time, Congress continues to evaluate the PPP loan forgiveness process, including the forgiveness of debt for loans under $150,000. Secretary of the Treasury Mnuchin has twice told lawmakers they should consider forgiveness of “small loans.” Information regarding PPP Forgiveness is detailed within The HEALS Act (S.1624), which is currently under debate in Congress.
Banks have been given an outline of procedures by the SBA and Treasury as to our responsibility and role in the forgiveness process. The procedures confirmed that borrowers must submit the completed application through their lender and that the financial institution is required to perform a review of the information provided.
UCB is fully prepared and gearing up for the acceptance of applications and supporting documents associated with PPP forgiveness, however, until congress passes the HEALS Act we are in a holding pattern.
What should you do in the meantime?
As previously communicated, thorough documentation regarding your payroll expenses will be the key to an easy forgiveness experience. We will be reaching out to you soon to assist you in determining which of the two SBA Forgiveness Applications is applicable to your business.
We understand that the forgiveness process can be confusing.
Read up on some of the terminology and learn what documentation you'll need to complete your forgiveness application.
How can you get prepared?
Below is a list of documentation to begin collecting that support how the loan proceeds were spent. Please note that all of the documentation listed below will need to be uploaded to us at time of application. Please take the time to scan your documents and get them ready for upload if they are not currently in digital form. High quality pictures of documents will be acceptable.
- Payroll reports from your payroll provider or bank account statements
- 2019 State and Federal payroll tax filings (Form 941)
- Payment receipts, cancelled checks, or account statements of any employer contributions to employee health insurance and retirement plans included in forgiveness amount request.
- Documentation that shows the number of FTE employees you maintained during the historical reference period chosen.
- Nonpayroll expense documentation verifying the existence of obligations prior to February 15, 2020, and receipts, canceled checks, or account statements verifying eligible payments
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.