Paycheck Protection Program (PPP) - 2021
The 2021 Paycheck Protection Program (PPP) is live as of January 15, 2021. This is available for customers who received PPP loans in the previous round, as well as businesses in Ohio and Indiana that did not apply in the previous round.
Be sure to complete this Union Bank document so that it can be uploaded when you're completing your PPP Loan Application.
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Required documentation needed when completing 2021 PPP Loan Application:
- If you participated in 2020 and your loan was $150,000 or more, be sure to complete your PPP Loan Forgiveness.
- Complete the Required Union Bank PPP Documentation and upload it when completing your PPP Loan Application.
- Evidence of 25% revenue reduction in 2020 compared to 2019 - for Draw 2 only (may be any one quarter of 2020 compared to the same quarter in 2019 or annually). Provide one of the following document types:
- Relevant tax forms including annual tax forms
- Quarterly Financial Statements
- Bank Statements
- Complete Payroll Expense Calculation Worksheets.
- Proof of Payroll Costs.
- Borrower's signed organizational document detailing loan signing authority. Complete Signing Authority Document, if organization document is not applicable.
- Unexpired, Government-issued Driver's License or Passport for all Owners over 20% (front and back).
- Complete Affiliation Addendum A if applicant or any owner is also an owner of another business.
- Evidence of SBA EIDL Loan (Draw 1 EIDL refi only), if loan was made between 1/31/2020 and 4/3/2020. Complete EIDL Addendum B.
2/22/2021 - The White House announced several reforms to the PPP loan program. Here are the highlights of the announcement:
- Prioritization of borrowers with fewer than 20 employees for 14 days.
- Starting 2/24/2021 at 9am and ending 3/9/2021, SBA will reject any app with 20+ employees.
- Each employee counts as one including full time, part time and seasonal employees.
- All files submitted to SBA prior to this date will be processed as normal, including those with hold codes.
- The Union Bank Company will continue the application process with all businesses. Those with 20+ employees will be held until 3/9/2021 to submit to SBA. Please continue to apply, complete your application and submit required documentation.
- Schedule C Filers (pending)
- SBA is working on an interim final rule (IFR) to allow Schedule C filers the same loan amount calculations as farmers.
- This will allow these borrowers to obtain a higher loan amount.
- There is $1 billion set aside for low-to-moderate income (LMI) borrowers.
- A new SBA Form 2483 application is being created.
- Other changes (pending)
- Elimination of restrictions for an applicant with a non-fraud felony. Those presently incarcerated do not qualify.
- Elimination of restrictions for an applicant with a delinquent federal student loan.
- Clarity on non-citizen applicants.
SBA Reference Materials
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The 2021 relief bill includes:
- Additional covered expense categories to include covered operations expenditures, covered property damage costs, covered supplier costs, and covered worker protection expenditures.
- Eligibility for the new round of PPP funding will be limited to those businesses that have experienced a 25% or greater revenue decline in any quarter over quarter comparison to the previous year as a result of the pandemic.
- Repeal of the rule requiring the SBA to deduct any EIDL advance amount from PPP loan forgiveness.
- Flexibility in the covered period from 8 to 24 weeks after origination.
- A streamlined forgiveness process for loans less than $150,000.