Small Business Loan: Covid-19 Relief
We are here for you. If you are a Western Union Business Solutions client or a WU® Money Transfer Agent, you can now apply for a forgivable SBA Paycheck Protection Program loan through Western UnionApply now
As part of the US government’s Coronavirus Aid, Relief and Economic Security Act, the Paycheck Protection Program offers a one-time loan for approved small businesses experiencing economic hardship:
The US Government has authorized limited funding for this program. Loan approvals and distribution will continue until funding is depleted. Because of high demand, it is important to apply as soon as you can. We may continue to accept and process applications after funding is exhausted, due to the possibility that additional funding may be made available by Congress at a later date. However, further funding is not guaranteed.
You can receive only one PPP Loan. Should you receive an approval from the SBA, be sure to cancel any pending applications with other providers.
How the loan works
The Paycheck Protection Program is part of the US Government’s Coronavirus Aid, Relief and Economic Security Act signed by the President on March 27, 2020. Through the program, approved businesses can obtain financial support through the US Small Business Administration (SBA) to keep their workforce on the payroll and pay other approved expenses during this challenging time.
Successful applicants can use the loan to pay staff, rent, mortgage interest or utilities only, subject to the limitations set forth in the program requirements. The SBA loan program funding will continue until all funds are distributed. Because funding could run out quickly, it is important to apply as soon as you can.
Who can apply?
US-based businesses in select industries with 500 or fewer employees are eligible. Some non-profit organizations, veterans’ organizations or Tribal business concern with more than 500 employees may also qualify, along with self-employed persons and independent contractors.
Visit the US Small Business Administration website for full loan qualification details.
Due to state law limitations, Western Union is not currently accepting applications from businesses in California, New Mexico, North Dakota, South Dakota, Rhode Island and Vermont.
What are the maximum and minimum loan amounts?
Western Union accepts loans through this process of up to $10 million.
What do I need to apply?
Applications for Paycheck Protection Program (PPP) are now open. You must certify that your business has not received a PPP loan from any other provider.
Loans are available to current Western Union Business Solutions clients and WU® Agents. To apply you will need:
Appropriate Business Identification Details (TIN, EIN, SSN for Owners/Individuals)
Financial Documentation to validate payroll expenses and the number of employees:
A business should provide supporting documentation such as payroll statements or a US federal tax return
A sole proprietor can use tax filings or income and expenses
An independent contractor can provide a 1099-MISC to determine earnings
If you cannot provide such documentation, you must provide alternative supporting documentation, such as bank records, to demonstrate payroll.
How to apply
Apply online for a Paycheck Protection Program loan through Western Union Business Solutions. To begin your application follow these simple steps:
How to qualify for loan forgiveness
Once your loan is approved by the SBA and loan funds are disbursed to you by Western Union, you are eligible to request SBA forgiveness. The loan will be fully forgiven if the funds are used for payroll costs, interest on mortgages, rent and utilities (at least 60% of the forgiven amount must have been used for payroll). Loans not forgiven by the SBA will be re-payable to Western Union with one percent interest, over a five-year period.
Forgiveness is based on the employer maintaining or quickly rehiring employees and maintaining salary levels, with exceptions.Business may still receive loan forgiveness if they are able to demonstrate an inability to rehire eligible employees eligible as of February 15, 2020 or hire qualified employees for open positions before December 31, 2020. If business were unable to return to regular operation due to government regulations, this too will be taken into consideration.
Be sure to carefully review the SBA requirements for loan forgiveness, including what supporting documentation will be required.
The SBA will provide additional information on how to submit a request for forgiveness, including required documentation.