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.
- First Draw PPP Loan Application for Schedule C Filers using Gross Income: 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.
- Second Draw PPP Loan Application for Schedule C Filers using Gross Income: Complete and submit along with the required documentation to your Farm Credit of the Virginias loan officer.
INFORMATION ABOUT FIRST DRAW PPP LOAN INCREASE
Those who received a First Draw PPP Loan and did not receive loan forgiveness by December 27, 2020 may be eligible for an increase based on rule changes. Loan increases may not be requested for any reasons other than those specifically allowed by SBA. To apply for a First Draw PPP Loan increase, you will need to submit a new SBA Form 2483 with the total revised First Draw loan amount.
Borrowers may reapply for a First Draw PPP Loan if you:
- 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, or
- Other conditions as follows:
- Sole Proprietor Only: Calculation is now based on 2019 Gross Schedule F income instead of Net Schedule F income. Partnerships Only: You may be eligible for an increase if you did not use K-1 net earnings from self-employment in your original calculation.
- Borrowers meeting the Seasonal Employer definition: Seasonal employers may choose any 12-week period from Feb 15, 2019 to Feb 15, 2020.
- Please consult SBA Procedural Notice 5000-20076 for a comprehensive list and detailed procedures.
PPP LOAN FORGIVENESS
Those who receive and use PPP loan funds may apply for loan forgiveness. You have 10 months after the end of your covered period to apply. 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 by completing the SBA Form 3508S.
- 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 using one of the application forms.
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).