New Forgiveness Information on the Paycheck Protection Program

The Small Business Administration and Treasury Department this evening released the application that borrowers must complete in order to have their Paycheck Protection Program loan forgiven. The form includes detailed information about the costs that are eligible for forgiveness and instructions for calculating those costs.

SBA announced several measures intended to reduce compliance burden and simplify the forgiveness process for borrowers, including a safe harbor from loan forgiveness reduction for borrowers that were able to rehire employees who had previously been let go or laid off by June 30, 2020. It also included an exemption from forgiveness reduction for borrowers who have made a good-faith, written offer to rehire workers that was declined.

Additionally, SBA provided an option for borrowers to calculate payroll costs using an “alternative payroll covered period” that aligns with their regular payroll cycles, and flexibility to include eligible payroll and non-payroll expenses paid or incurred during the eight-week period after receiving their PPP loan.

SBA noted that it will soon issue regulations and additional guidance for borrowers on completing the forgiveness form, as well as guidance for lenders detailing their responsibilities.
Click here to access the Paycheck Protection Program Loan Forgiveness Application.

Learn how the government stimulus package affects you.

The U.S. government has approved the historic $2 trillion Coronavirus Aid, Relief and Economic Security (CARES) Act stimulus package to help businesses and individuals impacted by the COVID-19 pandemic.


Paycheck Protection Loan (PPL) Program

The CARES Act establishes a new $349 billion Paycheck Protection Loan Program. The program will provide relief to small businesses so they can continue to keep their workers employed and sustain their businesses.

Follow the steps provided below to begin the application process for your SBA Paycheck Protection Loan.
Complete both the UBC and SBA Paycheck Protection Loan applications and send them to your local Union Bank lending expert using the Secure File Transfer tool provided or take it with you when you meet with your lender in person:
Click here to view the UBC Paycheck Protection Loan Application.
Click here to view the SBA Paycheck Protection Loan Application

Please use the following Affiliation Addendum A to identify all affiliates of the borrower:
Click here to view the the Paycheck Protection Loan Affiliation Addenum A.

We recommend having the following documents prepared when you meet with your lender to expedite the application process:Click here to view the Payment Protection Loan Application Checklist.

Use link provided below to securely transfer your files electronically to the Union Bank:
Click here to access the Secure File Transfer tool.


  • Loan is 100% SBA Guaranteed 7(a)
  • Minimum required loan amount of $5,000
  • Must apply by June 30, 2020
  • Applies to businesses and certain non-profits with fewer than 500 employees
  • Interest rate of 1.00%
  • A portion of the loan may be forgiven if criteria is met
  • 2 year term for portion not forgiven
Click here to view more program information on SBA's website.

How can the benefits be used?
  • Payroll costs, interest on mortgage payments, and utilities
  • Costs related to insurance premiums and continuing group healthcare benefits during periods of paid sick, medical, or family leave
  • Other limited business purposes

Who is eligible?
  • All businesses, including non-profits, Veterans organizations, Tribal concerns, sole proprietorships, self-employed individuals, and independent contractors, with 500 or fewer employees, or no greater than the number of employees set by the SBA as the size standard for certain industries

Terms & Conditions
  • Maximum loan amount up to $10 million
  • Loan forgiveness if proceeds used for payroll costs and other designated business operating expenses in the 8 weeks following the date of loan origination (due to likely high subscription, it is anticipated that not more than 25% of the forgiven amount may be for non-payroll costs)
  • All loans under this program will have the following identical features:
    • Interest rate of 1.00%
      • Maturity of 2 years
    • First payment deferred for six months
    • 100% guarantee by SBA
    • No collateral
    • No personal guarantees
    • No borrower or lender fees payable to SBA

Loan Details and Forgiveness

The SBA’s Paycheck Protection Program (PPP) loans will be fully forgiven if the funds are used for payroll costs, interest on mortgages, rent, and utilities (due to likely high subscription, at least 75% of the forgiven amount must have been used for payroll). Loan payments will also be deferred for six months. No collateral or personal guarantees are required. Neither the government nor lenders will charge small businesses any fees.

Forgiveness is based on the employer maintaining or quickly rehiring employees and maintaining salary levels. Forgiveness will be reduced if full-time headcount declines, or if salaries and wages decrease. PPP loans have a maturity of 2 years and an interest rate of 1%.

Loan forgiveness is an arrangement between the borrower and the SBA. It is not a service provided by the bank. Loan forgiveness is not automatically provided by the SBA, it must be requested from the SBA by the borrower.The borrower must provide documentation of the use of PPP loan proceeds as part of the forgiveness request to the SBA.

This is the latest information the SBA has provided on loan forgiveness at this time. For additional information regarding the SBA’s Paycheck Protection Program, please visit

If you have any questions or require further assistance with the application process, call (800) 837-8111 or email


Economic Injury Disaster Loan (EIDL) Program

The SBA offers disaster assistance in the form of low-interest loans to businesses, renters, and homeowners located in regions affected by declared disasters. Loans to cover repairs and replacement of physical assets damaged in a declared disaster. Loans to cover small business operating expenses after a declared disaster.
  • Low-Interest loans of up to $2 million are now available for small businesses and private non-profits
  • Loans may be used to pay fixed debts, payroll, accounts payable and other bills and have repayment options of up to 30 years
  • Interest rates are 3.75% for small businesses and 2.75% for private non-profits
  • Changes to the direct SBA disaster funding will be coming with the new legislation
  • Apply directly with SBA at
  • Changes to the direct SBA disaster funding will be coming with the new legislation

UBC Payment Deferrals

The Union Bank is offering payment deferrals on UBC Commercial Loans to those who have been impacted by the COVID-19 pandemic.
  • Up to a 90 day payment deferral on UBC Commercial Loans
  • $100 documentation fee (Not applicable for SBA Loans.)
  • Required info:
    • Most current business and personal taxes
    • Most current business financial statement (year-end and interim)
    • Updated personal financial statement
    • Completed UBC Payment Deferral questionnaire:
Click here to access the UBC Payment Deferral questionnaire.

*Additional support by way of payroll and interest payments for existing SBA 7(a) borrowers also pending with CARES

The Union Bank Co.

105 Progressive Drive
Columbus Grove, OH 45830
(800) 837-8111
Routing Number - 041213759