April 8, 2021
We wanted to pass along an update to the Paycheck Protection Program that was recently passed by Congress. Congress has extended the deadline for applications from 3/31/2021 to 5/31/2021. With this extension to the program, we will be holding another online information session to discuss the program, the forgiveness process and to answer any questions that you may have regarding the program or if you qualify.
We will be sending out details on this information session in the near future. In the meantime if you have any questions or would like to see if you qualify for a PPP loan, please reach out to us at email@example.com or 800-696-8628.
March 10, 2021
Join UCU For a PPP Information Session on March 16th
Over the course of the Paycheck Protection Program, we’ve received many questions and inquiries from folks to find out if they qualify. Particularly related to individuals that are self-employed/business owners and independent contractors. Just as you may be wondering what fits your business, it’s likely others have the same questions. In a time where we can all use a little extra help, UCU is here for U.
Please join us, share with a friend, and bring your questions! Next week, we’ll provide a brief presentation on this information and answer your questions. Questions can be submitted in advance at registration, by email or during the session.
When: Tuesday, March 16th, 12 – 1 PM
Where: Virtual WebEx
Registration has closed. Thank you for your interest.
Topics for Discussion
- Changes to the second draw PPP loans
- Changes for Schedule C borrowers
- Loan Forgiveness Update (EIDL loans)
- Common misconceptions about the program
Register by using the information below, the session is complimentary. A link to join will be shared by email the day prior to the event.
Thank you for your membership,
UCU Business Lending Team
February 26, 2021
Recently, the Small Business Administration announced some changes for small businesses to the Paycheck Protection Program including new calculations for businesses, sole proprietors and independent contractors who report income on a schedule C, a new application and time blocked off for the smallest of businesses only to apply. If you or someone you know is a business owner and is interested in learning more about the SBA’s Paycheck Protection Program, please reach out to us at 800-696-8628 or firstname.lastname@example.org. Our Business Services Manager Derek Hebert would be happy to set up a virtual meeting to answer your questions. We want you to know we are here for through these tough times and would love the opportunity to chat on how we can help.
UCU Business Lending Team
January 27, 2021
There have been some recent updates to the process and application forms that need to be used.
For any loan amounts that are $150,000 and under you are now able to use the simplified forgiveness application (3508S). This is now a one page form that you are able to complete instead of the longer 3508EZ and standard application (3508). Both the EZ forgiveness application and the standard forgiveness application have been updated as well. These forms are listed below.
Updated PPP application forms:
UCU Business Lending Team
January 14, 2021
We just received notification from the SBA that financial institutions with under $1Billion in assets will be able to start processing First Draw and Second Draw PPP loans starting on Friday 1/15/2021, which would include UCU.
Please take a few moments again to review the applications and the documentation that is required to make sure that you have the application filled out completely and are including all the required documentation. It is very important that all fields in the application are completed and that the required documentation is included when submitted. We will not be able to process incomplete applications and applications that do not have the required supporting documentation.
The instructions that are included with the application do a great job of walking your through filling out your application, so please make sure you are reviewing those while completing your application.
When you are ready to send us your application please send your application to email@example.com and someone on our business lending team will reach out to let you know we received your application and to let you know if any further documentation is needed.
UCU Business Lending Team
Powerform Option for Applications
Second Draw PPP Information
January 12, 2021
A lot of information was released from the SBA over the weekend in regards to PPP loans. As discussed in our previous email, some First Draw PPP recipients will be eligible to apply for a Second Draw PPP loan (a 2nd PPP loan). The program went live Monday 1/11/2021 for Community Financial Institutions to start processing applications for First Round PPP loans. A community Financial Institutions is CDCs (Certified Development Company), CDFIs (Community Development Financial Institution), Microlender Intermediaries, and Minority Depository Institutions. UCU does not fall under this category and is not able to start processing applications at this time. We have been advised we will be able to start processing applications “shortly after” the window for these Community Financial Institutions are able to process applications. As soon as we are able to start processing applications, we will be notifying our membership by email as we have here. In the meantime we have some details to share to help you prepare for when we are able to process applications.
Second Draw PPP Loans
- You qualify if you are a business, sole proprietor, independent contractor, veterans organization, tribal business concern, eligible 501( C ) ( 6 ) organization or eligible nonprofit news organization that:
- Has 300 or fewer employees.
- Experienced revenue reduction of 25% or greater in 2020 compared to 2019. This is done by comparing gross receipts for one quarter in 2020 with gross receipts for the same quarter in 2019 or if there was at least a 25% annual reduction in gross receipts from 2020 compared to 2019. Form 941, 1065 with K1’s, 1120S or Schedule C can be used for this. For loan amounts under $150,000 this documentation is not required to be submitted with your loan application but will be required to be supplied with your forgiveness application. Please make sure you are verifying this prior to applying for a second draw application as it may effect your forgiveness if calculated incorrect. For second draw loan amounts of $150,000 or greater you will need to supply this documentation with your second draw loan application.
- Received a First Draw PPP loan.
- Have used all the funds from your first draw PPP loan.
- Businesses with a NAICS code 72 (Accommodation and Food Service) are potentially eligible for a second draw loan amount of up to 3.5 times their average monthly payroll. All other businesses will be eligible up to 2.5 times their average monthly payroll.
- You will need to complete a PPP second draw application (attached below).
- You have the option to use 2020 or 2019 payroll to calculate average monthly payroll and loan amount. If you are using 2019 and you took your first draw PPP loan with UCU you may not need to submit additional payroll documentation. If you are using 2020 payroll costs we will need your filed 941’s for the year and a payroll report if applicable. For sole proprietors this will be based on line 31 of your 2020 Schedule C.
- Similar terms for forgiveness will apply to Second Draw PPP loans that apply to the First Draw Loans.
We will also be accepting applications for First Draw PPP loans as well if you have not already received one. The application for First Draw PPP loans is below as well. The terms of the Second Draw loans will be the same as First Draw loans.
Given that there are more strict requirements to receive a Second Draw PPP loan we are not expecting funds to go as quickly as previous rounds of the program, but it is still first come first serve.
There was also some news released in regards to First Draw PPP loans that have received forgiveness but had an EIDL Advance netted from your proceeds. For any borrower that this applies to, the SBA will be sending along forgiveness on the EIDL advance as well as any accrued interest meaning the full amount of your PPP loan will be forgiven regardless of EIDL advance. We are unsure when this will happen, but will notify you when it does. If you still have a balance on your PPP loan due to an unforgiven EIDL advance and the payment is coming due, we recommend that you make the monthly payment and any overage from the SBA that is a result of this will be deposited to your account.
There has been a lot of information released from the SBA over the past few days in regards to PPP. We have attached some helpful info including how to calculate loan amount, a top level overview of First Draw Loans and a top Level overview of Second Draw Loans, the applicable applications and instructions, as well as the links to the SBA and Treasury. Once we are notified as to when we will be able to begin processing applications we will reach out and let you know, but until then we recommend you take a look at the overviews, familiarize yourself with the applications and instructions and start to gather any required documents.
UCU Business Lending
January 7, 2021
While a second round of the SBA’s Paycheck Protection Program loans were recently signed into law, we are still awaiting guidance from the SBA on changes to the program as well as the application process. The SBA is currently working behind the scenes to put the second round of PPP loans and process in place. We don’t have any details of the program or the application process at this point, but as soon as the SBA has finalized the program and the process we will be getting that information out to our membership. There has been a lot of speculative rumors about what this version of the program will look like and require, but until we hear the details directly from the SBA we don’t have anything to share as we want to make sure the information you receive from us is the most up to date and accurate.
Aside from a new round of PPP loans, the SBA has also extended the deadline to apply for their Economic Injury Disaster Loan (EIDL) Program. The EIDL Program is offered directly through the SBA. More information about this program can be found here. We are also expecting to hear of some more programs offered by the SBA to not only help businesses survive the pandemic but also help them grow. As soon as any new announcements are made we will plan to share that information as well here.
For our PPP recipients who currently have an EIDL advance and have not applied for forgiveness, you may want to hold off on submitting your forgiveness application. We have been advised from our Maine SBA representative that the EIDL advances may now not be deducted from PPP forgiveness proceeds. As of right now though, this would only apply to PPP loans that have not been forgiven. We will provide more information on this as we hear.
As always, we want you to know that we are here to help you and your business. Please don’t hesitate to reach out with any concerns or questions you may have. We are happy to help and have many resources we can use to best assist you.
The UCU Business Lending Team
October 30, 2020
With the SBA’s launch of the new 3508S simplified application we have started seeing quite a few PPP forgiveness applications coming in and we wanted to send out these reminders to everyone to keep in mind and help us process these applications as efficiently as possible.
- Even though the SBA has released a new simplified application, there is still documentation that is required to process your forgiveness applications. It is important that this documentation is included with your application as we cannot process the application without it. The lender still needs to verify that the funds were used for payroll, rent and utilities and this documentation is used for that purpose. The required documentation is listed on the last page in the instructions of the application (form 3508S).
- If you have received an Economic Injury Disaster Loan (EIDL) advance from the SBA, we want to remind borrowers that this will be deducted from the forgiveness amount the SBA will remit to your PPP loan. Once the SBA remits their payment, the deferral period for the loan will end and payments on the remaining balance will begin in the following month. We will notify borrowers of the remaining balance, what the payments will be and when the payments will begin. Payments will be based on the remainder of the loans term. If you choose to just pay this balance off in full, there is no prepayment penalty to do so.
- The SBA has up to 90 days to make a forgiveness decision and remit the funds to the lender. From what we are seeing, it is typically taking the entire 90 day period to process. We will reach out to borrowers as we receive notification from the SBA on the status of forgiveness applications. All decisions will be communicated to the lender first and then we will reach out to communicate that to borrowers.
Please do not hesitate to reach out with any questions. We are here to help and want to do what we can to make sure these loans are forgiven for you as timely as possible.
Business Services Manager
October 15, 2020
The Small Business Administration recently announced a streamlined process for Paycheck Protection Program loan forgiveness, as stated in the latest PPP Interim Final Rule. The simplified process only applies to PPP Loans that are $50,000 or less as long as the borrower does not jointly have PPP loans $2 million or greater with any of its affiliates. Some of the features to this new streamlined process include:
- A streamlined application (SBA form 3508S).
- Exemptions for any reduction in forgiveness amount based on reductions to FTE salaries or employee wages.
While the application has been streamlined there are supporting documents that are still required with your forgiveness application. The list of required supporting documentation is listed in the SBA form 3508S instructions. It is very important that you read the instructions and submit the required documents, as we will not be able to process your application without it.
For Loan Amounts Greater Than $50,000
For loan amounts that are greater than $50,000, you would still use the 3508EZ application or the 3508 application and include the required documentation. Follow the instructions on the form for a list of what documents are required. As we have suggested in previous communications, for any self-employed borrowers and independent contractors that do not use a payroll company to pay themselves, we recommend still paying yourself in some way. That can be in the form of writing yourself a check and including a memo referencing payroll or a transfer between accounts with a comment referencing payroll. While it may not seem to make sense to do this, this is what has been suggested to us by our SBA representative to do to document your payroll.
Already Submitted a PPP Application?
As an update to any members who have submitted PPP Forgiveness applications already, the SBA has just started processing those applications and remitting funds to lenders to forgive these loans. We want to remind borrowers that the SBA has up to 90 days to process completed PPP forgiveness applications.
Here are some other resources that are available if you are continuing to experience hardships from the COVID-19 pandemic. While some businesses are starting to settle into a new normal or are easing back into their business volume, many are still struggling and in need of help.
- The State of Maine recently announced phase II of the Economic Recovery Grant Program. For those that looked into the first round but did not qualify, we encourage you to look into this round as there have been some changes allowing some businesses to now potentially qualify for it.
- UCU has partnered with the Town of Orono to offer the Orono Business Relief Loan. This loan is a 0% interest rate loan with 6 months of payment deferral. This loan is only offered to businesses located in Orono. There are also other grant and loan programs that municipalities throughout the state are offering as well.
- There are also several agencies throughout the state that are specializing in helping businesses get through the pandemic like SBDC Maine, SCORE, CEI and EMDC. All of these organizations have business advisors to help you and your business navigate these tough times.
For any business owners that may be experiencing difficulties, please do not hesitate to reach out to us. We are here for you and to help you find resources. If you have any questions please do not hesitate to reach out to us at firstname.lastname@example.org or 800-696-8628. We are happy to help however we can.
Business Services Manager