PPP Loan Forgiveness Helpful Tips


Updated October 23, 2020: NEW simplified application option now available in the bank’s PPP forgiveness portal! We suggest that borrowers that received a PPP loan of $50,000 or less, AND together with its affiliates, didn’t receive PPP loans totaling $2,000,000 or more consider the use of this application option. The Small Business Administration has released a streamlined loan forgiveness application (Form 3508S) specifically for Paycheck Protection Program loans totaling $50,000 or less. This form requires borrower certifications and supporting documentation for eligible payroll and non-payroll costs. It does not require calculations to be submitted.


Updated October 2, 2020:  The Small Business Administration has issued guidance on PPP borrower changes in ownership.  Borrowers must notify the bank in writing prior to the closing of any change in ownership.  An escrow account equal to the outstanding balance of the PPP loan will need to be established.  The bank may approve the change in ownership with SBA approval, as required.


Updated August 10, 2020: The SBA's PPP Forgiveness Portal is now available. Users will need to use Google Chrome or Mozilla Firefox for best results.




Paycheck Protection Program Loan Forgiveness

Recent changes to the Payroll Protection Program increase the likelihood that small business borrowers are eligible for full loan forgiveness. Your lender can explain how this will affect your business. The changes include:
  • The 8 week covered period is extended to 24 weeks
    Borrowers can choose to extend the 8 week period to 24 weeks, or they can keep the original 8 week period. New PPP borrowers will have a 24 week covered period, and in all cases, the covered period cannot extend beyond December 31, 2020.

  • 75% rule reduced to 60%
    Now borrowers must spend at least 60% on payroll, not the 75% in the original bill

  • New PPP loans will have a minimum maturity of 5 years
    New borrowers now have 5 years to repay the loan instead of 2 years. Existing PPP loans can be extended up to 5 years if the lender and borrower agree. The interest rate remains at 1%.

  • Extend Loan Forgiveness Period
    The deferment period has been extended from 6 months to the date the SBA remits the borrower’s loan forgiveness to the bank, or within 10 months of the last day of the covered period, if the borrower doesn’t apply for forgiveness

Home Relief Grant

Starting November 2, 2020, the state of Ohio, working with local Community Action Agencies, will help eligible Ohioans who are behind on rent, mortgage, and water and/or sewer utility bills catch up on past payments back to April 1, 2020 and provide additional assistance through December 30, 2020.
Ohioans will be able to apply for assistance through their local Community Action Agency starting November 2, 2020. A list of local Community Action Agencies can be found at the bottom of this section.
Ohio households with an annual income at or below 200% of the federal poverty guidelines will be eligible for assistance. Here is the annual income by household size.
Size of Household Total Household Income (12 Months)
1 up to $25,520
2 up to $34,480
3 up to $43,440
4 up to $52,400
5 up to $61,360
6 up to $70,320
7 up to $79,280
8 up to $88,240
For households with more than eight (8) members, add $8,960 for each additional member.
When applying for assistance, Ohioans will need to provide the following information:
  • Names of all household members
  • Date of Birth
  • Social Security Number
  • Current or Previous address
  • Copies of Social Security cards, or verification for each household member
  • Proof of income for all household members 18 years or older for a minimum of the past 30 days
  • For seasonal or self-employed individuals, please provide proof of income for 12 months
  • Any supporting documentation to demonstrate need
  • Hardship due to the COVID-19 pandemic
Individuals that are currently unemployed will only need to provide 30 days of income for verification purposes. Additionally, any federal unemployment stipend is excluded from determining a household’s benefit.

To receive Rental Assistance, they will also need to provide:
  • Eviction or past due rent notice. Notice should include total amount due (including fees)
  • If moving to a new location, justification for the move (i.e. currently homeless, living with another family and not sufficient space etc.)
  • Landlord contact information and lease agreement
To receive Mortgage Assistance, they will also need to provide:
  • Notice of late mortgage payment (including taxes and insurance)
To receive Utility Assistance, they will also need to provide:
  • Copy of utility bill demonstrating the account has been shut off, is in disconnect status or is past due
Ohio's Community Action Agencies
Ohio’s Community Action Agencies work with the Ohio Development Services Agency to provide assistance to Ohioans in need. You will be able to apply for mortgage, rent, water and/or sewer bill assistance. The Community Action Agency may also have programs that can help pay your gas and electric bills. You will need to apply at the Community Action Agency that serves your county.
To find your local Community Action Agency, visit: oacaa.org/agency-directory.


Paycheck Protection Program Loan

PLEASE NOTE: At this time, the Paycheck Protection Loan is not open for new applications.

  • Loan is 100% SBA Guaranteed 7(a)
  • Minimum required loan amount of $5,000
  • 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
  • 5 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 40% 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% 
    • First payment deferred for six months
    • 100% guarantee by SBA
    • No collateral
    • No personal guarantees
    • No borrower or lender fees payable to SBA


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 disasterloan.sba.gov/ela
  • 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