COVID-19 Business Resources
Update as of Friday, June 7, 2021
The Paycheck Protection Program (PPP) was closed to additional applications as of 5/28/21. We are proud to have processed more than 1600 total applications from three rounds of funding. United Bank is currently working to process forgiveness applications from all borrowers as they become eligible. Any customer who has received a PPP loan and is ready to submit an application for forgiveness should receive an email with further instructions. Any questions related to forgiveness may be sent to Agee Broughton at 251-446-6013.
Update as of Friday, May 14, 2021
United Bank has strongly supported small businesses during the pandemic by participating in the Paycheck Protection Program (PPP). We are proud to have processed more than 1400 total applications from three rounds of funding. United Bank is a Community Development Financial Institution (CDFI). Last week, it was announced that remaining PPP funds were earmarked for CDFI banks. CDFI banks may continue to process applications until the remaining allotment of funds has been exhausted or until May 31st whichever comes first. Since the announcement, we have received an increased volume of PPP applications. As of May 14th at 5 pm, we have decided to no longer accept any new PPP applications. Corporately, we will focus our efforts on processing the existing applications we have received.
Update as of Tuesday, May 11, 2021
As of May 4, 2021, the Small Business Administration has closed the PPP loan program to all financial institutions except Community Development Financial Institutions (CDFIs) and Minority Depository Institutions (MDIs). United Bank is a CDFI bank; thus, we can still process PPP loan applications. We cannot guarantee that a business will qualify for a PPP loan because funds are limited. The program will end when the SBA funds run out or on May 31, 2021, whichever comes first.
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.
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.
President & CEO
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
SBDC at University of South Alabama
Florida SBDC Network HQ
SBDC at University of West Florida
SCORE Business Mentors
South Alabama SCORE
Fairhope Chamber of Commerce
Alabama Capitol SCORE
Panama City SCORE
Veterans Business Outreach Center
For Veterans living in Alabama:
Veterans Business Outreach Center at Mississippi State
For Veterans living in Florida:
Veterans Business Outreach Center of Florida
Gulf Coast College-Panama City
Small Business Administration
District Office - Mobile, AL
District Office - Birmingham, AL
District Office - Jacksonville, FL
Regional Office - Atlanta, GA
Disaster Field Operations Center East - Atlanta, GA
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 Amount: Up 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
- Must have credit history acceptable to SBA
- Must show the ability to repay the SBA loan
Paycheck Protection Program
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
Average Monthly Payroll Costs X 2.5 = Maximum Loan Amount (Previous 12 months)
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)
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.
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