Paycheck Protection Program 2021
Second Time Borrower (Second Draw)

 

This page is for USB business customers who received PPP funds in 2020.
If you DID NOT RECEIVE PPP funds in 2020 (First Draw Applicant), click here

PPP ALERT: Due to declining availability of SBA funding, Union Savings Bank will not be accepting any new PPP applications after Tuesday, April 20, 2021. 

On Tuesday, January 19, at 9:00 a.m. EST, we began accepting new applications from existing USB Business customers for the second round of the Small Business Administration (SBA) Paycheck Protection Program. The information provided below is for businesses who DID receive a PPP loan from USB in 2020.

The SBA recently indicated it is unlikely existing program funding will last until the May 31, 2021, deadline. Due to the limited availability of funds and to provide us sufficient time to process the applications we have received, Union Savings Bank will not be accepting any new PPP applications after Tuesday, April 20, 2021. Additionally, we may choose to suspend acceptance of new applications at any time.

The SBA has informed us there will be a delay between the time an application is submitted for their approval and when the SBA will make a decision. This delay may take up to several days, and the SBA has asked lenders and borrowers to be patient.

Help us process your application quickly by providing both a completed application (including all required initials and signatures) AND the necessary supporting documents listed below at the same time. Not providing this information may delay the processing of your application.

We will review applications in the order they are received.

Applications will be accepted for USB customers who have business loans or deposit accounts with USB as of January 13, 2021. If you are not an existing USB customer, we advise you to contact your current financial institution for assistance.

Borrowers who have questions concerning eligible and ineligible expenses should consult their accountant.

In order to qualify for a Second Draw Loan, your business must first demonstrate a revenue drop of at least 25% between 2019 and a corresponding period in 2020. For specific information on the eligibility requirements, including how to calculate your maximum loan amount and other terms for a Second Draw PPP loan, please visit the Small Business Administration website.

STEPS TO TAKE TO APPLY

To apply, please follow these steps:

Steps

  1. Get the application
  2. Get the USB PPP Pre-Closing form
    • Download, save to your desktop and complete the USB PPP Pre-Closing form. Remember to save your form on your desktop. Download USB PPP Pre-Closing Form
  3. Follow the checklist
    • Using the checklist below, gather the required documents that you will submit with your application
  4. Submit your documents
    • Upload your application and all required documents to our secure server following the instructions provided below.

If you have questions, please contact your business lender, local branch manager or call us at 866.872.1866

Paycheck Protection Program (PPP) Check List for Second Draw PPP Borrowers

Union Savings Bank Customers
Paycheck Protection Program (PPP) Required Documents and Certifications

I. Completed SBA Paycheck Protection Program Application

II. Documentation of Eligible Payroll Costs
For the purpose of PPP loans , payroll costs consist of compensation to employees (whose principal place of residence is the United States) in the form of salary, wages, commissions, or similar compensation; cash tips or the equivalent (based on employer records of past tips or, in the absence of such records, a reasonable, good-faith employer estimate of such tips); payment for vacation, parental, family, medical, or sick leave; allowance for separation or dismissal; payment for the provision of employee benefits consisting of group health care coverage, including insurance premiums, and retirement; payment of state and local taxes assessed on compensation of employees; and for an independent contractor or sole proprietor, wages, commissions, income, or net earnings from self-employment, or similar compensation.

Maximum Cash Compensation that can be claimed per individual is capped at $100,000 annualized.

To provide validation of payroll costs, the following documentation must be provided along with your application. At your discretion, the documentation can be for the 2019 or 2020 period. In certain instances, a period that is precisely 1 year prior to the loan application is also acceptable. Remember to include evidence of how you calculated your loan request amount as part of this documentation:

For all Entities that are NOT Partnerships (or LLCs treated as Partnerships for tax purposes), Sole Proprietors (or LLCs treated as Sole Proprietors), Independent Contractors or Self-Employed Individuals:
1. 941 payroll tax forms (or other tax forms containing similar information) and state quarterly wage unemployment insurance tax reporting forms, from each quarter that overlaps with the period used to calculate the loan amount.
2. Equivalent payroll processor records can be used instead of payroll tax forms.
3. Evidence of any retirement and health insurance contributions.
4. Payroll statement or similar documentation from the pay period that covered 2/15/2020 (to establish operation at 2/15/2020).
5. Borrower’s loan amount calculation details (reconciliation).

For Partnerships LLCs treated as Partnerships:
1. 941 payroll tax forms (or other tax forms containing similar information) and state quarterly wage unemployment insurance tax reporting forms, from each quarter that overlaps with the period used to calculate the loan amount.
2. Equivalent payroll processor records can be used instead of payroll tax forms.
3. Evidence of any retirement and health insurance contributions.
4. Payroll statement, bank statement or similar documentation from the pay period that covered 2/25/2020 (to establish operation at 2/15/2020).
5. Borrower’s loan amount calculation details (reconciliation).
6. If including active general partner compensation in loan amount, also 2019 or 2020 K-1 for each partner.

For Schedule C filers (sole proprietors, LLCs taxed as sole proprietors, independent contractors, self-employed) with no W2 employees:
1. 2019 or 2020 Form 1040 Schedule C and 1099 Misc. 1099 Misc. is in addition, not in lieu of Schedule C
2. 2020 invoice, bank statement, or book of record to establish operation on or about 2/15/2020.
3. Borrower’s loan amount calculation details (reconciliation)

For Schedule C filers with W2 employees:
1. 2019 or 2020 Form 1040 Schedule C and 1099 Misc. 1099 Misc. is in addition, not in lieu of Schedule C
2. 2019 or 2020 Forms 941 (or other tax forms containing similar information) and state quarterly wage unemployment insurance tax reporting forms.
3. Equivalent payroll processor records can be used instead of 941 payroll tax forms.
4. Evidence of retirement and health insurance contributions.
5. Payroll statement or similar documentation from the pay period that covered 2/15/2020 (to establish operation at 2/15/2020).
6. Borrower’s loan amount calculation details (reconciliation).

III. Documentation of Revenue Decline
Important Note: Documentation of revenue decline is only required at time of application if the Second Draw Loan Request is greater than $150,000. However, if your business is approved for a loan of $150,000 or less, you will need to provide this documentation prior to receiving Loan Forgiveness

To be eligible for a Second Draw Loan a borrower must have experienced a revenue reduction of 25% or greater in 2020 relative to 2019. The revenue reduction is to be calculated in one of the following ways:

  • If the borrower had gross receipts in the first, second, third, or fourth quarter of 2020 that declined at least 25% from their gross receipts in the same quarter of 2019.
  • If the borrower was not in business for the full year of 2019, alternative calculations can be used to demonstrate gross receipts declined by at least 25%, based on when the business began operations. These alternatives can be found in the instructions at the end of the Second Draw Application
  • If the borrower was in business for the full year of 2019 and 2020 and annual gross receipts for 2020 declined by at least 25% from the full year of 2019, this meets the revenue reduction criteria and the borrower can submit complete copies of 2020 and 2019 tax returns for documentation of the decline.

Gross receipts includes all revenue in whatever form received or accrued from whatever source. Generally receipts are “total income” plus “cost of goods sold” and excludes net capital gains or losses. Gross receipts do not include taxes if already included in income, proceeds from transactions between a concern and its affiliates, and amounts collected by a travel agent, real estate agent, advertising agent, conference management service provider, freight forwarder, or customs broker. The amount of any forgiven PPP loan should not be included as part of gross receipts.

Documentation demonstrating at least 25% decline in gross receipts, as defined above, must be provided for loan requests greater than $150,000. This information can be provided in any reasonable form including:

  • Output from the borrowers accounting software demonstrating the decline between the appropriate periods of 2019 and 2020 as defined above
  • Statements prepared by the borrower’s accountant demonstrating the decline
  • Schedule prepared by the borrower with sufficient evidence (receipts, bank statements, etc.) to demonstrate the decline
  • Complete 2019 and 2020 tax returns can be provided if available and full year gross receipts declined by at least 25% in 2020 compared to 2019.

IV. Completed USB PPP Pre-Closing Form
Download, save to your desktop and complete the USB PPP Pre-Closing form. Remember to save your form on your desktop. Download USB PPP Pre-Closing Form

SUBMIT YOUR DOCUMENTS SECURELY

To upload your Payment Protection Program application and supporting documentation please follow these instructions:

  • Click on the login button below in the Secure Document Upload Area
  • If you already have an account, great, continue to login
    • New users will need to create an account by hitting the ‘register’ button in the middle of the page
  • Once you login, select the Compose tab and using the drop down menu in the “To” field select “Apply SBA PPP 2021” from the options. Type the name of your business in the subject line and attach your application and supporting documents
  • Hit the send button to submit your completed application and supporting documents
    • You will need to fully complete and save the application to your desktop, including any required initials and signatures, then scan it, prior to uploading
    • If you want to save your work, hit the Save Draft button and come back later to upload your application and documents
  • That’s it, we’ll reach out to you after we have reviewed everything

There is no need for you to follow up with us, we’ll reach out to you if additional information is needed. In addition, we have developed the following communication plan to keep you apprised of your application status.

Throughout the process, the Bank will communicate with you regularly concerning the status of your application. This communication will be accomplished utilizing the email address provided by you at application. Please check your inbox and spam folders.

We know you’ll be anxious to get a response. Please be assured we have a full team dedicated handling these applications and are moving as quickly as possible to take care of all of our customers. The best thing you can do is to make sure you have followed all the instructions outlined in the PPP Checklist above and submitted all documents requested. Be sure to check your email for communication from the Bank regarding the status of your application.

If you have questions, please contact your business lender, local branch manager or call us at 866.872.1866

We began accepting applications on Tuesday, January 19, 2021, at 9:00 a.m.

SECURE DOCUMENT UPLOAD AREA

This section is for USB customers to securely submit SBA Paycheck Protection Program Loan applications and supporting documentation. Please remember to upload all required documents or your application cannot be processed.