The SBA Paycheck Protection Program (PPP)

We look forward to assisting our existing AgCarolina Farm Credit members with Paycheck Protection Program (PPP) loan requests.  We know this is a difficult time for businesses, and we are striving to support our members.

The Small Business Administration (SBA) has renewed the Paycheck Protection Program as a way to help businesses keep their workforce during the COVID-19 pandemic.  This program authorizes up to $284 billion toward job retention and certain other expenses through March 31, 2021 or until government funding is exhausted. 

SBA is currently offering two types of loans: 

First Draw PPP Loans

Loans can be used to help fund payroll costs, including benefits, and may also be used to pay for mortgage interest, rent, utilities, worker protection costs related to COVID-19, uninsured property damage costs caused by looting or vandalism during 2020, and certain supplier costs and expenses for operations. 

Borrowers are generally eligible for First Draw PPP Loans if they are business entities, sole proprietors, independent contractors, or self-employed individuals with less than 500 employees:

     - Have not previously obtained a PPP loan.

     - Did not borrow the full amount they were eligible for with the first PPP loan (restricted to certain situations/requirements).  These loans must be made by same lenders the first PPP loan. 

The SBA has provided guidance on how to calculate the maximum loan amount for first-draw loans and the necessary documentation to provide by business type. To assist you with assembling required information for your loan request, refer to our PPP Document Checklist.

SBA Application Form 2483 

Second Draw PPP Loans

Loans can be used to help fund payroll costs, including benefits, and may also be used to pay for mortgage interest, rent, utilities, worker protection costs related to COVID-19, uninsured property damage costs caused by looting or vandalism during 2020, and certain supplier costs and expenses for operations. 

Borrowers are generally eligible for Second Draw PPP Loans if they:

     - Previously received a First Draw Loan and has used or plans to use the full amount only for authorized purposes. 

     - Have no more than 300 employees.

     - Can demonstrate at least a 25% reduction in gross receipts between comparable quarters in 2019 and 2020.  

The SBA has provided guidance on how to calculate the maximum loan amount for second-draw loans and the necessary documentation to provide by business type. To assist you with assembling required information for your loan request, refer to our PPP Document Checklist.

SBA Application Form 2483-SD

Applications for First and Second Draw PPP Loans are open until March 31, 2021. For additional assistance and to apply for a PPP loan, contact your local AgCarolina Farm Credit loan officer. The application can be completed electronically. If you would prefer this option, contact your local AgCarolina Farm Credit loan officer for further instruction. 

For more information, visit the SBA website.  


 

HOW TO APPLY FOR A PPP LOAN

Below are the steps you will need to follow to apply for a PPP loan with AgCarolina Farm Credit. 

  1. Determine which loan is appropriate and download the appropriate form from the SBA website. 
     
  2. Contact your AgCarolina loan officer for guidance on how to complete the form and to begin the loan application process. 
     
  3. Submit your application form (see above for the correct form) and supporting documentation, including the PPP Document Checklist, to your local AgCarolina Farm Credit loan officer.  

 

FOR MORE INFORMATION

To learn more about the Paycheck Protection Program, please visit the Paycheck Protection Program section of the Small Business Administration website. To apply contact your AgCarolina loan officer.

Credit subject to approval. Terms and conditions apply. This is not a commitment to lend. Program, rates, terms, and conditions are subject to change without notice. Subject to Small Business Administration (SBA) guidelines, approvals and guarantees. This document is intended to convey general information only and not to provide legal advice or opinions.


Resources

Here are some resources that will help as you navigate the application process: 

SBA Coronavirus Small Business Guidance & Loan Resources

SBA PPP Frequently Asked Questions for Lenders and Borrowers