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Small Business Loans: To learn about your financial relief options and get the most up-to-date information on the Paycheck Protection Program, including loan forgiveness resources, please visit this page
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PPP Loan Forgiveness Resources

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How to apply for forgiveness:

Our goal is to help you and your small business maximize forgiveness to best position you for success long-term. We understand that you may be anxious to begin the PPP loan forgiveness process. As a reminder, 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, we ask that you do not submit this form, whether by email or other means, to your banker.

Instead, we developed a digital forgiveness application within the UCBI CARES Portal where you submitted your original PPP application and documentation. We are eager to provide you access to the digital forgiveness application, however we are waiting for additional clarity on the Paycheck Protection Flexibility Act.

Once we have clear guidance on the final forgiveness rules, a link to United’s loan forgiveness application will be distributed to the email address of the individual that you designated to manage and upload documentation for the PPP loan within the UCBI CARES Portal.

May 28 Update:
Paycheck Protection Flexibility Act

On May 28, the House of Representatives passed the Paycheck Protection Program Flexibility Act (H.R. 7010). The Senate will now consider the bill which, if enacted, would modify certain PPP loan forgiveness provisions.

We will continue to monitor the legislation and provide updates if a final bill is signed into law, but as it stands currently, the highlights of the bill include the following: 

Increases Time to Use Loan Funds

The CARES Act currently requires PPP borrowers to spend the loan over an 8 week period following the receipt of funds to have the loan forgiven. The House-passed bill extends this period to 24 weeks or until December 31, 2020.
 

Amends the 75% Payroll Rule

Currently, PPP borrowers must use at least 75% of PPP loans for payroll costs to receive full forgiveness. H.R. 7010 reduces this amount to 60%, allowing 40% of the loans to be used for non-payroll costs, which include rent, mortgage interest and utilities.  
 

Allows Participation in Employer Payroll Tax Deferral

Currently, PPP borrowers cannot also participate in the CARES Act payroll tax deferral. If H.R. 7010 becomes law, this exclusion would be eliminated.
 

Provides Safe Harbor for Some Job Reductions

Currently, PPP borrowers must maintain their FTE level to secure full forgiveness of their loan. The new bill would provide safe harbor from this requirement for borrowers in certain circumstances, including extending the deadline to December 31, 2020, with exceptions based on employee availability.
 

Increases Deferral Period

Under the CARES Act, borrowers have an automatic six month deferral period before they must begin to repay any unforgiven loan funds. This bill increases the deferral period to 10 months.
 

Extends Terms for Unforgiven Portion

Currently, PPP loans have a term of two years for any unforgiven principal. If enacted, H.R. 7010 extends the amount of time borrowers have to repay the loans to five years, at 1.00% interest.

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

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. 

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

How can you get prepared?

Below is a list of documentation to begin collecting that support how the loan proceeds were spent. Please note that all of the documentation listed below will need to be uploaded digitally within the UCBI CARES Portal. Please take the time to scan your documents and get them ready for upload if they are not currently in digital form. High quality pictures of documents will be acceptable.

  • Payroll reports from your payroll provider or bank account statements
  • 2019 State and Federal payroll tax filings (Form 941)
  • Payment receipts, cancelled checks, or account statements of any employer contributions to employee health insurance and retirement plans included in forgiveness amount request.
  • Documentation that shows the number of FTE employees you maintained during the historical reference period chosen.
  • Nonpayroll expense documentation verifying the existence of obligations prior to February 15, 2020, and receipts, canceled checks, or account statements verifying eligible payments

We highly encourage you to document all aspects of your loan, from start to finish, in the event that it comes under further review. As some of this guidance from SBA and Treasury may continue to change, we expect additional questions may arise. If you have questions about your good faith certification for your PPP loan, we recommend you reach out to your legal advisor for assistance. If you have any other questions, reach out to your banker and know that we’re in this together.

United CARES Act Resources for You

COVID-19 has significantly impacted nearly every business in our community. We have created CARES Act resources and tools to provide you with guidance to help navigate this unprecedented time.

1 Legal Disclaimer: These programs were created to provide an overview of certain aspects of the PPP program. The information provided does not, and is not intended to, constitute legal advice; instead, all information is for general informational purposes only. Information contained herein is subject to change and may not constitute the most up-to-date information. It is recommended that you contact your legal advisor to obtain advice with respect to any particular legal matter, and you should not act or refrain from acting on the basis of information contained herein without first seeking advice from your attorney. Only your individual legal advisor can provide assurances that the information contained herein – and your interpretation of it – is applicable or appropriate to your particular situation. All liability with respect to actions taken or not taken based on the contents hereof are hereby expressly disclaimed. The content herein is provided "as is;" no representations are made that the content is error-free.

 

United Community Bank will not pay fees to or otherwise compensate anyone acting as an agent of the business for advising on or assisting in the preparation of the Paycheck Protection Program application or otherwise. The information provided is accurate and updated as of May 29, 2020. Terms and conditions are subject to change.