Effective September 1, 2021, UFCU is accepting applications for PPP forgiveness via the SBA PPP Direct Forgiveness Portal.

Paycheck Protection Program (PPP)

The federal Paycheck Protection Program provided eligible businesses with resources to maintain their payroll, hire back employees who may have been laid off, and cover applicable overhead. UFCU participated in providing these loans to Members during the 2020 and 2021 programs.

PPP Forgiveness

PPP loans may be eligible to be forgiven, in whole or in part, by submitting a loan forgiveness application with UFCU. Eligibility is based on US Small Business Administration (SBA) requirements and use of funds for eligible business expenses, of which at least 60% must be used for payroll. PPP loan payments are deferred for ten months following your covered period. Visit the SBA website for details on the loan forgiveness program.

What business expenses are eligible for forgiveness?

  • At least 60% of the PPP forgiveness amount must be used for payroll. The remaining funds can be used for eligible business-related non-payroll costs. Forgivable expenses include but are not limited to:

    • Payroll costs (may include wages, salaries, retirement contributions, healthcare benefits, insurance premiums, covered leave, and other expenses)
    • Mortgage interest
    • Rent payments
    • Utility payments

    Legislation in December 2021 added these eligible expenses and made them retroactive to any previous unforgiven PPP loans:

    • Covered operations expenditures. Payment for any software or cloud computing service that facilitates business operations, product or service delivery, human resources, or accounting, among other things.
    • Covered property damage costs. Costs related to property damage and vandalism or looting due to public disturbances that occurred during 2020 that was not covered by insurance.
    • Covered supplier costs. Expenditures to a supplier of goods for the supply of goods that are essential to operations when the expenditure is made and is made pursuant to a contract, order, or purchase order in effect prior to taking out the loan. With respect to perishable goods, the contract, order, or purchase order must be in effect at any time during the covered period.
    • Covered worker protection expenditures. Operating or capital expenditures to facilitate the adaptation of business activities to comply with requirements or guidance issued by federal, state, or local authorities in relation to COVID-19, including personal protective equipment.

    Refer to the SBA for a full list of eligible costs that can be forgiven under a PPP loan.

    If part of the loan is not forgiven, you will be responsible to repay the amount not forgiven plus any accrued interest, according to the terms of the promissory note.

What is the covered period?

  • The covered period is the period in which loan funds must be used to qualify for loan forgiveness. You can choose a covered period of 8 to 24 weeks, beginning on the date you received the loan proceeds.

    Funds must be used for eligible costs incurred during the covered period.

What is the deferral period?

  • No PPP loan payments are due during the deferral period. The deferral lasts 10 months after the last day of the covered period.

    Your deferral period ends either one of two ways:

    1. On the date when the SBA makes a decision on your application for forgiveness, or
    2. If you have not applied for forgiveness, 10 months after the end of the covered period.

When can I apply for loan forgiveness?

  • A borrower can apply for forgiveness only after all loan proceeds for which the borrower is requesting forgiveness have been spent. If borrowers do not apply for forgiveness within the deferral period, PPP loan payments are no longer deferred, and borrowers must begin making loan payments to UFCU.

What if I have questions about application Rules, expenses, or covered periods?

  • UFCU aims to keep you informed, simplify the process of submitting your forgiveness application, ensure that you have the necessary documentation, and update you as your application is processed. While we will be available to assist with questions about the process, questions specific to completing the application should be directed to your accountant, attorney, or other business advisors.

Apply for Loan Forgiveness

The process required for loan forgiveness depends upon the amount of the loan:

  • For Loans Greater than $150,000 — UFCU will contact you directly with a link to apply for forgiveness.
  • For Loans Less than $150,000 — If your total loan amount is equal to or less than $150,000, you will apply through the US Small Business Administration (SBA) PPP Direct Forgiveness Portal. The SBA portal provides worksheets, makes calculations, accepts your supporting documents, and provides an online signature process. The SBA offers live customer service to portal users at (877) 552-2692. UFCU cannot assist with the SBA portal. After you submit your online forgiveness application, you can log back into the portal to check the status of your application. The SBA provides a step-by-step guide to help you complete the online forgiveness application.
Apply for Forgiveness

Additional Resources

If you need help with your application, send the SBA PPP Forgiveness Customer Service team an
in-application message using the link at the top of the portal screen. Or, call the SBA helpline at
(877) 552-2692.

For more information about Direct Forgiveness or help with the SBA process, visit the SBA's
Borrower FAQs on Direct Forgiveness.

This year has been difficult for many small businesses and individuals. We are eager to continue supporting our Business Members and community. Thank you for your membership.