Answer: Yes. OneUnited Bank is a Preferred SBA 7A lender and is authorized to participate in the Paycheck Protection Program (PPP). We are offering PPP loans to our existing and new OneUnited Bank customers through online banking.
Answer: The Paycheck Protection Program (PPP) is part of the Coronavirus Aid, Relief and Economic Security Act (CARES) Act to offer small business (< 500 employees) loans to support payroll and certain other expenses. Loans are available for up to 2.5 times your average monthly payroll during the year preceding the application, with a maximum loan of $10 million. If employers maintain their payroll and use loan funds for allowed expenses like payroll, rent and utilities for the first 8 weeks after the loan is issued, the loan amount is forgiven. The PPP is retroactive to February 15, 2020.
Answer: If you are a OneUnited Bank customer, a small business as defined below and were operational as of February 15, 2020, you are eligible for a PPP loan with OneUnited Bank:
It is important to note that the SBA applies complex affiliation requirements, which generally require a business to aggregate all of its parent companies, affiliates, and subsidiaries in determining whether the business meets the small business size requirements and borrowing criteria. These affiliation requirements still generally apply under the PPP, except that they are waived for:
Answer: Certain business types are not eligible for a PPP loan due to SBA or OneUnited Bank guidelines. Here is a list of ineligible businesses.
Answer: We have powerful features such as BankBlack Early Pay, so you can get paid up to 2 days early with direct deposit and our BankBlack Card which represents the power of our $1.3 trillion in annual spending. We also offer Holographic Tap-to-Pay Visa Debit Cards that include radiant images to reflect the power of our dollars and “contactless” technology so you can simply tap your card to make purchases and be on your way in seconds.
Answer: You can use the loan to fund payroll costs, employee salaries, costs related to the continuation of group healthcare benefits during paid leave (sick, family or medical), insurance premiums, mortgage interest payments, rent, utilities and interest on any other debt obligation incurred before February 15, 2020.
Answer: Here is a list of documentation you may need. Documents required vary by business type.
Answer: No collateral is required.
Answer: No, there is no personal guarantee requirement. However, if the proceeds are used for fraudulent purposes, the U.S. government will pursue criminal charges against you.
Answer: No, the SBA is waiving the requirement that you try to obtain some or all of the loan funds from other sources (i.e., Credit Elsewhere requirement).
Answer: Borrowers may apply for PPP loans and other SBA financial assistance, including Economic Injury Disaster Loans (EIDLs), 7(a) loans, 504 loans, and microloans and also receive investment capital from Small Business Investment Corporations (SBICs). However, you cannot use your PPP loan for the same purpose as your other SBA loan(s). For example, if you use your PPP to cover payroll for the 8-week covered period, you cannot use a different SBA loan product for payroll for those same costs in that period, although you could use it for payroll not during that period or for different workers.
Answer: Each Taxpayer Identification Number is only eligible for one PPP loan. There is no limit to the number of lenders you can apply with, BUT you can only receive one PPP loan.
Answer: At this time, OneUnited Bank can only process one application/EIN/one deposit account per email address. If you have multiple businesses that do not fit that criteria, we recommend applying at other eligible lenders.
Answer: Although the program is open until June 30, 2020, we encourage you to apply as quickly as you can because there are a limited amount of funds available, and the program is first-come first-served.
Answer: No. It’s free to apply for a PPP loan and there are no origination fees. Please be wary of any third party that asks you to provide up-front fees to apply for PPP loans as the SBA guidance explicitly prohibits such fees.
Answer: Program funds are limited. We cannot guarantee that your application will be processed and submitted before SBA funding is no longer available. Applying with OneUnited Bank does not limit you from applying with other lenders and/or platforms.
Answer: Even if you haven’t filed a requested form, you should work with your CPA or refer to your tax software to fill it out and submit it for your loan application. Since 2019 payroll forms like 940, 941 and W3 weren’t included in the COVID-19 extension, they should be filed and submitted as part of your application.
Answer: No, that is considered owner’s draw compensation and is not considered payroll. Sole proprietors should submit Form 1040 with Schedule C attached.
Answer: No, if you are an LLC, take draws from the company and file on your 1040, that is not included in the payroll calculation.
Answer: You will submit your Form 1040 with Schedule C to verify payroll.
Answer: Examples of organizational documents include: Articles of Incorporation, Certificate of Existence, Certificate of Organization, State LLC Agreement, Certificate of Formation, or the Articles of Information. (This does not apply if you are a sole proprietor or independent contractor.)
Answer: For Sole Proprietors, single member LLCs and self-employees we will need:
For Independent contractors we will need 1099s (and proof of payment such as paid invoices)
Answer: OneUnited Bank will not be able to submit your application to the SBA if we can’t verify your payroll costs through this documentation.
Answer: Yes, please email us at [email protected] from the email address associated with your application with your request to withdraw.
Answer: Yes, the loan amounts will be forgiven as long as:
Answer: The amount of your loan that is forgiven is equal to the amount you spend during the 8 weeks following loan origination toward eligible expenses, including:
Not more than 25% of the forgiven amount may be for non-payroll costs. Forgiven amounts will not be considered cancellation of indebtedness income for federal tax purposes.
Answer: The amount of loan forgiveness is reduced if there is a reduction in the number of employees, or a reduction of more than 25% in wages paid to employees. Reductions in the number of employees or compensation occurring between February 15, 2020, and April 26, 2020, will generally be ignored if the action (layoff or salary reduction) is reversed by June 30, 2020.
Answer: You can submit a request to OneUnited Bank by providing:
OneUnited Bank must make a decision on the forgiveness within 60 days.
Yes, the Act allows for a maximum forgiveness of 8 weeks of approved costs. The remainder will be treated as a loan. Remember that the approved costs subject to forgiveness are broader than just payroll, and also include mortgage interest, rent and utilities.
Answer: Loans through PPP have a fixed interest rate of 1%.
Answer: All payments (principal, interest and fees) are deferred for 6 months; however, interest will continue to accrue over this period.
Answer: The loan is due in 2 years, but you can repay early without any prepayment penalties or fees.
Answer: Any business-related interest payments on a mortgage or other debt obligation (excluding any prepayment or principal obligation) that was incurred before February 15, 2020.
Answer: Payments for business-related rent under a leasing agreement that was in force before February 15, 2020.
Answer: Payments for business related utilities (for the distribution of electricity, gas, water, transportation, telephone, or internet access) for which service began before February 15, 2020.
Answer: Payroll costs include:
For a sole proprietor or independent contractor: wages, commissions, income, or net earnings from self-employment, capped at $100,000 on an annualized basis for each employee
Answer: Yes, the following payroll costs are excluded:
Answer: No, independent contractors have the ability to apply for a PPP loan on their own so they do not count for purposes of a borrower’s PPP loan calculation.
Answer: For any employee whose salary is $100,000 or more, only $8,333 per month can be included in the calculation of average monthly payroll costs, in addition to that employee’s cost of health and retirement benefits and state and local taxes prorated for the covered period.
Answer: In addition to the approved uses for a Section 7(a) loan made in the ordinary course, a PPP loan may, for the period from February 15, 2020 to June 30, 2020, be used for the following: