COVID-19 Business Resources

Update as of Monday, January 11, 2021

We are now accepting PPP applications.  We are working with a third party vendor, Sage Works, to securely and efficiently process your PPP application.  
 

Click here to begin submitting your electronic application 

Update as of Saturday, January 9, 2021

The SBA has released a revised application for the PPP relaunch.  The applications are for both first and second time PPP loan customers.  We have a dedicated team reviewing guidance as well as formulating procedures in preparation for Monday's launch.  We will begin accepting applications Monday, January 11th.  More information will be provided and released over the weekend.  Please check back frequently for updates.  If you would like to more information related to the relaunch on Monday, please visit sba.gov. 
 

Update as of Friday, January 8, 2021

The SBA has announced that the Paycheck Protection Program (PPP) will re-open the week of January 11th, 2021. To promote access to capital, the SBA will initially only open the program to community financial institutions. As a CDFI bank, we are honored to be extended the opportunity to provide PPP funding to small businesses in our communities.  While the SBA has not yet provided an approved application to share with borrowers or banks, United Bank will begin accepting application for first time PPP borrowers on January 11th, 2021 and second time PPP borrowers on January 13th, 2021 subject to the SBA’s release of the application.
 
United Bank is committed to assisting small businesses, both customers and non-customers.  Our ability to provide PPP loan service is contingent on the SBA providing guidance and an approved application.  Please check back frequently for PPP updates.
 

Update as of December 30, 2020

Recently, Congress approved a COVID-19 relief package. This bill was signed into law by the President on Sunday December 27, 2020. This agreement contains an extension of the Paycheck Protection Program (PPP) allocating $284.6 billion for small businesses still struggling from economic disruptions related to COVID-19. This extension will reopen the Paycheck Protection Program to customers applying for their first PPP Loan, and it will allow eligible businesses to apply for a second PPP loan.  While it is too early to speak to any specifics related to PPP, United Bank is committed to providing critical resources to individuals and businesses who have been significantly impacted by COVID-19.  Additionally, beginning Thursday, January 7th, we will resume our Small Business Resources webinar series.  We will provide updates as more information is released.

How United Bank supports business

Our world and nation are currently experiencing unprecedented disruptions, affecting everyone in some way. No one was expecting this, but here we are, and you are trying to manage your business in the midst of uncertainty and chaos. Know that at United Bank, we are working diligently to provide ideas and resources to assist you in navigating these uncharted waters.
Recognizing the threat that the Coronavirus (COVID-19) pandemic is to your business, we have created a special webpage for our business clients, www.unitedbank.com/CovidBusinessResources. On this page you will find
  • Links to small business assistance organizations
  • Specific information about the SBA Economic Injury Disaster Loan Program & Paycheck Protection Program 
  • Helpful tips for managing your business during times of crisis
  • Additional information that may assist you in the current situation 
Information about new resources for businesses is becoming available daily. We will continually update www.unitedbank.com/CovidBusinessResources with information as it becomes available, so please check back with us frequently.
United Bank is committed to you and your business. Please do not hesitate to contact us, we will help in any way possible.
 
Bob Jones
President & CEO

 

SBA Assistance Partners

The following are local offices and partner organizations in our area who can help you with questions about applying for SBA loans, preparation of financial statements, and loan application assistance.

Small Business Development Centers of Alabama
Primary SBDC office in Alabama
205-348-1582
 
SBDC at University of South Alabama
877-825-7232
 
Florida SBDC Network HQ
850-898-3479
 
SBDC at University of West Florida
850-474-2528
 
SCORE Business Mentors
 
South Alabama SCORE
Fairhope Chamber of Commerce
251-928-6387
 
Alabama Capitol SCORE
334-240-6868
 
Panama City SCORE
850-257-3453
 
Veterans Business Outreach Center
 
For Veterans living in Alabama:
Veterans Business Outreach Center at Mississippi State
662-325-4990
 
For Veterans living in Florida:
Veterans Business Outreach Center of Florida
Gulf Coast College-Panama City
800-542-7232
 
Small Business Administration
 
District Office - Mobile, AL
251-544-7401
 
District Office - Birmingham, AL
205-290-7101
 
District Office - Jacksonville, FL
904-443-1980
 
Regional Office - Atlanta, GA
404-331-2354
 
Disaster Field Operations Center East - Atlanta, GA
404-331-0333
 
Office of Women's Business Ownership
 
U.S. Chamber of Commerce 
 

 

SBA Economic Injury Disaster Loans

SBA Economic Injury Disaster Loans

Counties in Alabama and Florida have been officially designated as SBA Disaster areas as a result of the Coronavirus (COVID-19) pandemic. This designation allows businesses to apply for SBA's Economic Injury Disaster Loans (EIDL program). These loans are available for working capital purposes at loan amounts up to $2 million. Additional information on the EIDL program is available, however, some important tips to consider. 

YOU MAY REQUEST UP TO A $10,000 ADVANCE ON YOUR LOAN REQUEST FOR YOUR EIDL REQUEST.  YOU ARE NOT REQUIRED TO PAY THESE FUNDS BACK EVEN IF YOU ARE NOT APPROVED.  

  • Apply as soon as you possibly can. The sooner you apply, the sooner you receive an answer.
  • Make sure your application is complete. Incomplete applications slow down the process.
  • Use available resources to assist you like this website and your United Bank bankers.

SBA Economic Injury Disaster Loan Basics

  • SBA Economic Injury Disaster loans are underwritten and approved through SBA   
  • Loan AmountUp to $2 million, subject to credit approval
  • Interest Rate: 3.75% fixed for businesses; 2.75% fixed for nonprofits
  • Term: Up to 30 years based on ability to repay
  • Uses: Working capital to pay fixed debts, payroll, accounts payable, and other bills that could have been paid had Covid-19 crisis not occured
  • Collateral: Loans over $25,000 require collateral. SBA takes real estate collateral when available. SBA will not decline a loan for lack of collateral, but requires borrowers to pledge what is available
  • Loans $200,000 or less do not require guarantors  

Approval Criteria

  • Must have credit history acceptable to SBA
  • Must show the ability to repay the SBA loan
 
 

Paycheck Protection Program

We are now accepting PPP applications.  We are working with a third party vendor, Sage Works, to securely and efficiently process your PPP application.  


Click here to begin submitting your electronic application

 

Payroll Protection Program Loan Information Sheet

  • Loan amount: 2.5 times average monthly qualifying costs, up to $10 million (detailed formula included) (3.5 times monthly qualifying costs for business's with NAICs codes beginning in 72) 
  • Interest Rate:  1%
  • Fees: None
  • Collateral: None
  • Borrower Guarantees: None
  • Prepayment Fees: None
  • Purpose: To pay qualifying costs for the 24 week period following date of loan closing. 
  • Loan Term: 5 years
  • Loan Forgiveness: This is a forgivable loan if the loan funds are used in accordance with SBA regulation.
  • Forgiven loan amounts are not taxable.
  • “Credit Elsewhere”: Waived
 
Loan Amount Calculation
Standard
Average Monthly Payroll Costs X 2.5 = Maximum Loan Amount (Previous 12 months)
OR
Seasonal 
Average Monthly Payroll Costs X 2.5 = Maximum Loan Amount (Period from 2/15/19 -6/30-19 or 3/1/19-6/30/19, borrower option)
OR
New Business (since 6/30/19)
Average Monthly Payroll Costs X 2.5 = Maximum Loan Amount (Period from 1/1/2020-2/29/2020)
 
Uses for Loan and Qualifying Expenses for Forgiveness
  • Payroll Costs
  • Costs for employer paid insurance and health care benefits
  • Employee salaries and commissions
  • Interest payments on mortgages originated prior to 2/15/2020
  • Rent on leases signed prior to 2/15/2020
  • Utility payments for utilities started prior to 2/15/2020
  • Interest on any other debt originated prior to 2/15/2020

PPP Loan Calculator Spreadsheet 

SBA Faith Based FAQs

SBA Payroll Protection Program Affiliation Rules

U.S. Department of the Treasury - Assistance for Small Businesses

Best Practices for PPP Forgiveness

Updates on Paycheck Protection Program Loans

Forgiveness of PPP Loans
PPP loans are there to help you retain your employees, maintain payroll, and cover other specified essential business expenses.  According to the current program rules, PPP loans are eligible for complete forgiveness if certain requirements are met. As of now, there is very limited guidance from the SBA and Treasury on what will be needed to establish that your PPP loan is eligible for forgiveness. Below is a summary of the PPP rules related to forgiveness, as they currently exist. We expect Treasury and the SBA to release additional guidance in the next few days. Despite this uncertainty, it is not too early to start closely documenting how your business uses the PPP funds.
  • To be 100% forgiven, a minimum of 60% of your PPP loan proceeds must be used to cover qualifying payroll costs during the 8 or 24 week period immediately following receipt of loan proceeds.
  • 40% of the proceeds may be used for other qualifying non-payroll expenses over the 8 or 24 week period immediately following your loan date.  These qualifying non-payroll expenses must not total more than 40% of the requested forgiveness amount.  
Good Faith Certification
What is “good faith” when it comes to certifying that a PPP borrower needs the PPP loan to sustain the borrower’s ongoing business operations? While there is no black-and-white definition of “good faith” in the PPP rules, we are certain that the overwhelming majority of small business borrowers made their applications in good faith. The lack of clarity surrounding how Treasury and the Small Business Administration will review applications for evidence of good faith is the reason why United Bank is sharing what we believe to be some best practices to help protect your business in the unlikely event that a question arises around your good faith certification.
 
The first action we suggest is to write a memo that explains why your business needed the PPP money. Some questions you might want to address are:
  • Why did you believe the PPP loan was necessary to sustain your ongoing business operations at the time you took the loan?
  • What was the economic conditions that you faced in the immediate weeks and months after taking the loan? Would you have to permanently lay off employees? Would you suffer long-term harm to your business?
  • Did you have other sources of capital? If so, what did you have planned for that money before the pandemic happened? Explain why taking the PPP loan helped avoid damage to your ongoing business operations.
  • Explain why you could not access other liquidity sources on reasonable market terms during this pandemic. For instance, if you have a line of credit, explain why drawing on it instead of taking the PPP loan would have been harmful to your business. 
  • Explain any other reasons not listed above why the loan was necessary to sustain your business. In other words, why you really needed the money.
Answering these questions is not mandatory and is not meant to substitute for professional legal or accounting advice. This is simply a suggestion on a best practice to protect yourself and your business should questions arise about your good faith certification that you needed the PPP loan to sustain your business.
 
Additionally, we suggest that you implement the following practices that will simplify documenting your expenditures:
  • Keep PPP funds in an account that is separate from your day-to-day operating account.
  • Keep a spreadsheet or other register of how you used the PPP funds.
  • Save all paperwork and electronic data that could be used to document how you spent the funds.
  • Review your expenditures regularly. DO NOT assume that your payroll outsourcing company or bookkeeper is spending the money appropriately. You, as principal or business owner, must review these expenditures as they happen. You are the one responsible if the funds are misspent.
United Bank will work with you to collect all documentation needed to apply for forgiveness and we will keep you updated as the PPP rules develop. Also, please check the Department of Treasury’s Frequently Asked Questions guidance at https://home.treasury.gov/system/files/136/Paycheck-Protection-Program-Frequently-Asked-Questions.pdf for updated guidance on specific questions regarding PPP loans. 
 
DISCLAIMER: The information contained here is simply a summary of general guidelines and not intended to, and does not serve as, substitute legal or professional accounting advice. Please contact your attorney or CPA with questions that are specific to your situation.
 
To maximize the amount of your loan forgiveness, United Bank strongly recommends that PPP borrowers use the funds only for eligible purposes. If you have questions about whether an expenditure is appropriate, we urge you to reach out to your attorney or tax professional. United Bank cannot provide advice on whether an expenditure is eligible for forgiveness. Please be aware that using the PPP funds for ineligible purposes may result in a denial of loan forgiveness, as well as other punitive measures from Treasury and the SBA. 

 

 

 

Your Dedicated United Bank Team

Please feel free to call your local lender with questions.

Other Resources

 

SBA Checklist for Managing in Times of Financial Difficulty  

Coronavirus Aid, Relief, and Economic Security (CARES) Act FAQs 

Small Business Resource Webinar Info

Small Business Resource Webinar Power Point April 1st 

Link to recorded Small Business Resource Webinar August 6th (Access Password: YXt^j5z6)

Link to recorded Small Business Resource Webinar August 13th (Access Password: d?%GVq74)

Link to recorded Small Business Resource Webinar August 20th (Access Password: xXcz!GX1)

Link to recorded Small Business Resource Webinar August 27th (Access Passcode: m11Gb=&j)

Link to recorded Small Business Resource Webinar September 3rd (Access Passcode: 9Tyr=%?X)

Link to recorded Small Business Resource Webinar September 10th (Access Passcode: 6#9u7%3P) 

Link to recorded Small Business Resource Webinar September 24th (Access Passcode: %Jw^2VCT)

Link to recorded Small Business Resource Webinar October 8th (Access Passcode: 2cZ.@i%a)

Link to recorded Small Business Resource Webinar October 15th (Access Passcode: Dg5gM2s.)

Link to recorded Small Business Resource Webinar October 22th (Access Passcode: A!jp@E0^)

Link to recorded Small Business Resource Webinar November 5th (Access Passcode: +J7n7@sj)

Link to recorded Small Business Resource Webinar December 10th (Access Passcode: 4rQ$G$=Q)

Link to recorded Small Business Resource Webinar January 7th (Access Passcode: z9&8j!da)

Link to recorded Small Business Resource Webinar January 14th (Access Passcode: iz!TL8q9)

Link to recorded Small Business Resource Webinar January 21st (Access Passcode: .s9V0dcy) 

Return to top

Email Link Disclaimer

Notice: Because there is a risk that information transmitted via Internet email could fall into the wrong hands, United Bank suggests that confidential information, such as account numbers or social security numbers, not be transmitted via email. If this information must be stated, please contact United Bank by phone or at your nearest office. Thank you. If you "Continue", the link will open a new email message in your default email program.

Close |   Continue

×

External Link Disclaimer

United Bank has no control over information at any site hyperlinked to or from this Site. United Bank makes no representation concerning and is not responsible for the quality, content, nature, or reliability of any hyperlinked site and is providing this hyperlink to you only as a convenience. The inclusion of any hyperlink does not imply any endorsement, investigation, verification or monitoring by United Bank of any information in any hyperlinked site. In no event shall United Bank be responsible for your use of a hyperlinked site. If you "Continue", the link will attempt to open a new window. If it is unable to, the link will open in the current window.

Close |   Continue

×

Deluxe Corporation Link Disclaimer

As of July 1, 2015, United Bank is partnering with Deluxe Corporation for Personal & Business check orders. If this is the first time you have ordered checks since then, you need to contact your local branch or call 800.423.7026 to place your order. If you have ordered checks since July 1, 2015, please click continue to proceed.

If you choose to continue, you will be taken to Deluxe Corporation's website. The inclusion of this hyperlink does not imply any endorsement, investigation, verification or monitoring by United Bank of any information on this site. United Bank is not responsible for your use of the hyperlinked site.

Close |   Continue

×