The Small Business Administration (SBA) Paycheck Protection Program (PPP) was updated through the most recent COVID-relief legislation signed into law on December 27, 2020. The SBA PPP funding is designed to prevent workers from losing their jobs and support small businesses that experienced disruptions due to COVID-19. The most recent changes to the SBA PPP Program included:
- Reopening First Draw PPP loans for first time PPP borrowers
- Announcing updates that may result in some borrowers applying for a First Draw PPP loan increase
- Introducing new Second Draw PPP loans for qualified PPP borrowers
- Providing additional updates and streamlining the PPP loan forgiveness process
APPLY FOR A PPP LOAN
First Draw PPP Loans – SBA reopened PPP for First Draw Loans the week of January 11, 2021. If you did not receive a PPP loan previously, you may now be eligible.
- Learn more about First Draw Loans
- First Draw PPP Loan Application: Complete and submit along with the required documentation to your Farm Credit of the Virginias loan officer.
Second Draw PPP Loans – PPP now allows certain eligible borrowers that previously received a PPP loan to apply for a Second Draw PPP Loan with the same general loan terms as their First Draw PPP Loan.
- Learn more about Second Draw Loans
- Second Draw PPP Loan Application: Complete and submit along with the required documentation to your Farm Credit of the Virginias loan officer.
INFORMATION ABOUT DRAW 1 PPP LOAN INCREASE
Existing PPP borrowers that did not receive loan forgiveness by December 27, 2020 may:
Reapply for a First Draw PPP Loan if they previously returned some or all of their First Draw PPP Loan funds, or 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 form and additional details will be posted on this page as they are available.
PPP LOAN FORGIVENESS
Those who received a PPP loan may apply for loan forgiveness when the new forms and procedures are released by SBA (Expected to be available in late January). Before you apply for forgiveness, you may wish to consult an accountant or tax advisor to determine if you qualify for a Draw 1 loan increase, and if so, obtain your increase before you apply for forgiveness.
- PPP loans of $150,000 or less – Borrowers will need to sign a one-page attestation that they used funds appropriately and followed program rules. The attestation form and additional details will be posted on this page as they are available from SBA.
- PPP loans greater than $150,000 – Borrowers will need to go through a process similar to what was in place prior to the December 27, 2020 relief act. The application form and additional details will be posted on this page as they are available from SBA.
FOR MORE INFORMATION
To learn more about the Paycheck Protection Program, please visit the Paycheck Protection Program section of the Small Business Administration website.
WHO DO I CONTACT REGARDING AN EXISTING SBA PPP LOAN THROUGH FARM CREDIT OF THE VIRGINIAS?
Contact your loan officer or call us at 1-800-919-FARM (3276).