December 1 Update | SBA Releases PPP Loan Data
On December 1 the SBA released additional PPP borrower information following a federal judge’s order to comply with the Freedom of Information Act. This means that the information you provided at the time of application, including but not limited to name, address, loan amount, employee count and other demographic information, is available to the public through the SBA's website.
We recognize the sensitivity you may have around having your loan data made public by the SBA. While United Community Bank was not responsible in any way for this data release, we hope to help your business navigate any challenges that this development may cause. As we mentioned on our PPP WebEx in May, we anticipated this could be the case. During that WebEx, we shared some things to keep in mind if you receive inquiries about your PPP loan.
Quick tips from the WebEx
- Remember, the program is called the Paycheck Protection Program. How many people were you were able to keep employed as a result of these funds? Keeping people employed helps keep the economic engines of our communities running.
- Small businesses are the backbone of our nation's economy. These funds were a lifeline to stabilize small businesses during a time of crisis.
- Applying for the PPP loan and taking the steps needed to keep your doors open is a service to your employees, your vendors and your customers.
View the SBA's Public PPP Data Listen to the Webinar
November 18 Update | PPP Revenue Ruling and Deductibility of Expenses
On Wednesday, November 18, the IRS and the U.S. Treasury Department recently issued rulings clarifying the deductibility of expenses where a business received a PPP loan, but the loan has not been forgiven by the end of 2020. According to the Treasury, “since businesses are not taxed on the proceeds of a forgiven PPP loan, the expenses are not deductible. This results in neither a tax benefit nor tax harm since the taxpayer has not paid anything out of pocket.”
October 8 Update | Awaiting Forgiveness Guidance
On Thursday, October 8, the SBA and Treasury Department announced a streamlined forgiveness application process for PPP loans under $50,000. This is welcome news to the thousands of PPP loan customers that will benefit from a simpler forgiveness process. Secretary of Treasury Mnuchin stated, “We are committed to making the PPP forgiveness process as simple as possible while also protecting against fraud and misuse of funds. We continue to favor additional legislation to further simplify the forgiveness process.” Click here to read the press release.
The SBA issued IFR #25, Additional Revisions to Loan Forgiveness and Loan Review Procedures, which outlines the forgiveness process for loans of $50,000 or less. It also outlines our responsibilities regarding the review of your forgiveness documentation, particularly expenses submitted that are in excess of your PPP loan amount. The new, two-page application will soon be electronically available for United Community Bank PPP loan customers in the UCBI CARES Portal. Please note: United will not accept the SBA formatted application therefore customers should not complete and submit the paper version of the application. The application is available to view here for your convenience.
Read IFR #25 Read the Press Release
July 27 Update | Awaiting Forgiveness Guidance
Congress continues to evaluate the PPP loan forgiveness process, including the forgiveness of debt for loans under $150,000. Secretary of the Treasury Mnuchin has twice told lawmakers they should consider forgiveness of “small loans.” In the meantime, the SBA issued procedures that financial institutions (Lenders) will use to submit loan forgiveness applications. According to the SBA, they will be ready to begin accepting forgiveness applications from Lenders in mid-August. The procedures confirmed that borrowers must submit the completed application through their Lender.
We developed an online PPP loan forgiveness tool where United PPP borrowers will input forgivable expenses. Since PPP loan borrowers are fully responsible for detailing the use of their PPP loan proceeds, this tool will guide you through that process. Click here for a guide on PPP loan forgiveness terminology.
June 7 Update | Paycheck Protection Flexibility Act
On June 5, 2020, the president signed the Paycheck Protection Flexibility Act into law. The new legislation makes PPP loans more flexible for borrowers. Among other changes, the new Act extends the time for borrowers to use the loan-- and still be forgiven-- from 8 weeks to 24 weeks. It also, and reduces the amount of the loan that must be used for payroll costs from 75% to 60%. For a detailed overview of the changes to the program and how this will impact your PPP loan forgiveness, click here.
June 3 Update | Congress Passes Legislation
On May 28, the House of Representatives passed the Paycheck Protection Program Flexibility Act (H.R. 7010), and the Senate followed suit on June 3, 2020. The president is expected to sign it into law in coming days. We are closely following the progress of this legislation and will provide updates as they become available. Read the details of the proposed legislation here.
Once we have clarity on the final PPP loan forgiveness rules, we will be prepared to work with United’s PPP loan borrowers to begin the forgiveness application process. In the meantime, click here for some steps you can take to prepare for the forgiveness process.
May 15 Update | Loan Forgiveness Application
On May 15, 2020, the Small Business Administration (SBA) released the application for Paycheck Protection Program (PPP) loan forgiveness. We are still waiting for the final guidance to determine next steps, but in the meantime click here to read the SBA’s press release to better understand what will be required.
Note: United’s PPP borrowers will not be submitting the SBA’s version of PPP Loan Forgiveness Application or any of the forms and schedules associated with it. Therefore, if you have your PPP loan with us, we ask that you do not submit this form, whether by email or other means, to your banker. Instead, you will be emailed a link to a secure portal to complete the loan forgiveness application process.2
Loan Forgiveness Details
May 13 Update | Treasury guidance for loans less than $2 million
The Treasury released new guidance regarding the review of PPP borrowers’ required good-faith certification. According to this new information, “any borrower that, together with its affiliates, received PPP loans with an original principal amount of less than $2 million will be deemed to have made the required certification concerning the necessity of the loan request in good faith.”
This provides a safe harbor for borrowers with PPP loans less than $2 million since their good-faith certification will not be reviewed.
The SBA also extended the deadline to the safe harbor for businesses that have access to other sources of capital to repay their PPP loans. Borrowers that repay the loan in full by Monday, May 18, 2020, will be deemed by the SBA to have made the required certification of economic need in good faith.
Click here to read Treasury’s answers in their entirety (see question 46 and 46) along with other frequently asked questions about PPP loans.
View Treasury FAQs
May 5 Update | PPP Loan Update Panel Discussion
Lynn Harton, Chairman and CEO of United Community Bank, led a panel discussion on Tuesday, May 5, with Brad Rustin (Partner with Nelson Mullins), Rich Bradshaw (Chief Banking Officer, United Community Bank) and Marion Crawford (Chief Marketing Officer, United Community Bank). All comments made during the webinar were current as of May 5, but some details may have changed since.1
Listen on Demand Webinar Recap