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Paycheck Protection Program

Paycheck Protection Program (PPP)

Loan Information

The Paycheck Protection Program is a loan designed to provide a direct incentive for small businesses to keep their workers on the payroll. First Draw PPP Loans can be used to help fund payroll costs, including benefits. Funds can also be used to pay for mortgage interest, rent, utilities, worker protection costs related to COVID-19, uninsured property damage costs caused by looting or vandalism during 2020, and certain supplier costs and expenses for operations. 
 Union State Bank is proud to participate in the PPP program. Please contact one of our loan officers for more information.

The U.S. Small Business Administration (SBA) will forgive loans if all employee retention criteria are met, and the funds are used for eligible expenses.

  • The First Draw loan can be up to 2.5 times the business’s average monthly payroll costs.
  • PPP loans have an interest rate of 1%.
  • Loans issued prior to June 5 have a maturity of 2 years. Loans issued after June 5 have a maturity of 5 years.
  • Loan payments will be deferred for borrowers who apply for loan forgiveness until SBA remits the borrower's loan forgiveness amount to the lender. If a borrower does not apply for loan forgiveness, payments are deferred 10 months after the end of the covered period for the borrower’s loan forgiveness (either 8 weeks or 24 weeks).
  • No collateral or personal guarantees are required.
  • Neither the government nor lenders will charge small businesses any fees.
The above guidelines apply to many borrowers; however, there are some exceptions. 

Eligible small entities, that together with their affiliates (if applicable), have 500 or fewer employees—including nonprofits, veterans organizations, tribal concerns, self-employed individuals, sole proprietorships, and independent contractors—can apply. Entities with more than 500 employees in certain industries that meet SBA’s alternative size standard or SBA’s size standards for those particular industries can also apply. 

Also eligible to apply for First Draw PPP Loans are businesses with a NAICS Code that begins with 72 (Accommodation and Food
Services sector) or eligible news organizations with no more than 500 employees per physical location, as well as housing
cooperatives, 501(c)(6) organizations, or destination marketing organizations with no more than 300 employees.

Business must have been in operation as of February 15, 2020.

Existing PPP borrowers that did not receive loan forgiveness by December 27, 2020 may:
(1) reapply for a First Draw PPP Loan if they previously returned some or all of their First Draw PPP Loan funds, or
(2) under certain circumstances, request to modify their First Draw PPP
Loan amount if they previously did not accept the full amount for which they are eligible.
The application period for a First Draw PPP Loan is closed at this time. Union State Bank is proud to participate in the PPP program. Please contact one of our loan officers for more information.
All new First Draw PPP Loans through any existing SBA 7(a) lender or through any federally insured depository institution, federally insured credit union, eligible non-bank lender, or Farm Credit System institution that is participating in PPP will have the same terms regardless of lender or borrower.

At least $15 billion is being set aside for First Draw PPP loans to eligible borrowers with a maximum of 10 employees or for loans of $250,000 or less to eligible borrowers in low- or moderate-income neighborhoods. Contact your Union State Bank lender for more information.

If you have questions regarding one of the PPP loan programs please contact your Union State Bank loan officer. For full details of the program visit:

The U.S. Small Business Administration 

U.S. Department of the Treasury

How to Calculate First Draw PPP Loan Amounts

The above guidelines apply to many borrowers; however, there are some exceptions.