The Union Bank Paycheck Protection Program (PPP) is a program designed to help small businesses during the COVID-19 pandemic by providing them with funding to pay for their employees` salaries, rent, and utility bills. The program is available for businesses that have less than 500 employees and are experiencing financial hardship due to the pandemic.
One important document that businesses need to be aware of is the Union Bank Paycheck Protection Program Loan eSign Consent Agreement. This agreement outlines the terms and conditions of the loan, as well as the borrower`s responsibilities and obligations.
Here are some key points to keep in mind when reviewing the eSign Consent Agreement:
1. Loan Amount: The loan amount is based on the borrower`s average monthly payroll costs, up to a maximum of $10 million. Borrowers must provide documentation to support their payroll costs, such as payroll tax filings or payroll processor records.
2. Loan Forgiveness: The loan can be fully forgiven if the borrower uses the funds for eligible expenses, such as payroll, rent, and utilities, and maintains their employee headcount and salaries. Borrowers must apply for forgiveness and provide documentation to support their eligible expenses.
3. Repayment Terms: If the loan is not forgiven, the borrower will have a two-year term with a 1% interest rate. Payments are deferred for the first six months.
4. Certifications: The borrower must certify that they have accurately provided all required information, that they intend to use the loan proceeds for eligible expenses, and that they will comply with all program requirements and regulations.
5. Collateral and Guarantees: The loan does not require collateral or personal guarantees.
It is important for businesses to review the eSign Consent Agreement carefully and make sure they understand their responsibilities and obligations. They should also consult with their accountant or financial advisor to ensure they are using the loan funds in the most effective way possible.
Overall, the Union Bank Paycheck Protection Program Loan eSign Consent Agreement is a critical document for small businesses seeking financial relief during the COVID-19 pandemic. By understanding the terms and conditions of the loan, borrowers can make informed decisions about how to use the funds to keep their businesses afloat.