Union Bank® COVID-19 Relief for Businesses

SBA Paycheck Protection Program (PPP)

PPP Loan Forgiveness

June 8, 2020

As your trusted financial partner, we want to provide you with the resources and tools to help you request PPP loan forgiveness.

We’ll continue to update this page as we receive guidance from the Small Business Administration (SBA) and Treasury Department and notify you via email when it is time to electronically submit your request for PPP loan forgiveness.

Legislative Update:

On June 5, 2020, the “Paycheck Protection Program Flexibility Act of 2020” was signed into law. This act amends the CARES Act to modify certain provisions related to loan forgiveness. We encourage you to review the act for additional information.

Language taken directly from a joint statement issued by the Treasury Department and the SBA on June 8, 2020 states, “The SBA in consultation with the Department of Treasury will issue rules and guidance to implement the legislative amendment for PPP to include:
  • Extending the covered period for loan forgiveness from eight weeks after the date of loan disbursement to 24 weeks after the date of loan disbursement, providing substantially greater flexibility for borrowers to qualify for loan forgiveness.  Borrowers who have already received PPP loans retain the option to use an eight-week covered period.
  • Lowering the requirements that 75 percent of a borrower’s loan proceeds must be used for payroll costs and that 75 percent of the loan forgiveness amount must have been spent on payroll costs during the 24-week loan forgiveness covered period to 60 percent for each of these requirements. If a borrower uses less than 60 percent of the loan amount for payroll costs during the forgiveness covered period, the borrower will continue to be eligible for partial loan forgiveness, subject to at least 60 percent of the loan forgiveness amount having been used for payroll costs.
  • Providing safe harbor from reductions in loan forgiveness based on reductions in full-time equivalent employees for borrowers that are unable to return to the same level of business activity the business was operating at before February 15, 2020, due to compliance with requirements or guidance issued between March 1, 2020 and December 31, 2020 by the Secretary of Health and Human Services, the Director of the Centers for Disease Control and Prevention, or the Occupational Safety and Health Administration, related to worker or customer safety requirements related to COVID–19.
  • Provides a safe harbor from reductions in loan forgiveness based on reductions in full-time equivalent employees, to provide protections for borrowers that are both unable to rehire individuals who were employees of the borrower on February 15, 2020, and unable to hire similarly qualified employees for unfilled positions by December 31, 2020.”
Please note, the Small Business Administration (SBA) has not issued final guidance to lenders as to how the Paycheck Protection Program Flexibility Act of 2020 will impact the PPP loan forgiveness request process. We request your patience as we closely monitor updates to the program and modify the PPP forgiveness request process accordingly.

Requesting PPP Loan Forgiveness

  • We will notify you via email when it is time to access the Union Bank® SBA PPP Forgiveness Portal to submit your request.
  • Currently, PPP loan forgiveness is not automatic.  Borrowers are required to request forgiveness through Union Bank®.  However, several industry trade groups are petitioning congress to make forgiveness automatic for certain loans. We encourage you to read the letter provided to congress and consider the potential impact this may have on your individual situation.
  • Requests for PPP loan forgiveness must be submitted using the Union Bank® SBA PPP Forgiveness Portal. Our call center, branch bankers and relationship managers are unable to accept requests for PPP loan forgiveness.
  • Once we receive your request, we’ll review it for completeness prior to transmitting to the SBA.
  • You’ll be able to check the progress of your request using the Union Bank® SBA PPP Forgiveness Portal.

Frequently Asked Questions:

Can I request PPP loan forgiveness through Union Bank?

Yes, if you received a PPP loan from Union Bank you must request forgiveness of the PPP loan through Union Bank. If you received your PPP loan through another institution you will need to apply for forgiveness through that institution.

How will I apply for forgiveness?

Requests for PPP loan forgiveness must be submitted using the Union Bank® SBA PPP Forgiveness Portal. Our call center, branch bankers and relationship managers are unable to accept requests for PPP loan forgiveness.

When can I request loan forgiveness?

We will notify you via email when it is time to access the Union Bank® SBA PPP Forgiveness Portal to submit your request.

Is loan forgiveness automatic?

No, you must request forgiveness. 

Do I need to provide documentation to support my use of the funds?

Please refer to the SBA.gov and Treasury.gov sites for the latest information.