The SBA Paycheck Protection Program (PPP)

We look forward to assisting you with your Paycheck Protection Program (PPP) loan request.  We know this is a difficult time for businesses, and we are striving to support our members during this pandemic.

The Small Business Administration (SBA) has established the Paycheck Protection Program: a loan program to assist small businesses nationwide adversely impacted by the COVID-19 emergency. The program is designed to provide a direct incentive for small businesses to keep their workers on payroll by providing funds to pay payroll costs including benefits and certain other expenses, up to $10 million.

  • You now have a 24-week “covered period,” the period in which you must spend the PPP loan proceeds for full loan forgiveness, starting on the date the funds were disbursed.
  • If your PPP loan was funded prior to June 5, 2020, you still have the option to use the original 8-week covered period.
  • You now must use at least 60% of funds for eligible payroll costs to qualify for full loan forgiveness, down from 75%
  • You can use up to 40% of funds for eligible non-payroll costs, up from 25%


You are eligible for a PPP loan if your business meets SBA requirements and has its principal place of residence is in the United States, including nonprofits, veterans organizations, tribal concerns, self-employed individuals, sole proprietorships, and independent contractors. In addition, your business must meet current Farm Credit eligibility requirements to obtain funding from a Farm Credit System institution.


Funds are provided in the form of loans that may be forgiven when used for payroll costs, interest on mortgages, rent, and utilities (at least 60% of the forgiven amount must have been used for payroll). Loan payments will also be deferred for six months. No collateral or personal guarantees are required.

Forgiveness is based on the employer maintaining or quickly rehiring employees and maintaining salary levels. Forgiveness will be reduced if full-time headcount declines, or if salaries and wages decrease. The loan forgiveness form and instructions include several measures to reduce compliance burdens and simplify the process for borrowers, including:

  • Options for borrowers to calculate payroll costs using an “alternative payroll covered period” that aligns with borrowers’ regular payroll cycles
  • Flexibility to include eligible payroll and non-payroll expenses paid or incurred during the 24-week period after receiving their PPP loan
  • Step-by-step instructions on how to perform the calculations required by the CARES Act to confirm eligibility for loan forgiveness
  • Borrower-friendly implementation of statutory exemptions from loan forgiveness reduction based on rehiring by June 30
  • Addition of a new exemption from the loan forgiveness reduction for borrowers who have made a good-faith, written offer to rehire workers that was declined


The Paycheck Protection Program resumed accepting applications July 6, 2020, at 9:00 AM EDT in response to the President signing the program's extension legislation. The new deadline to apply for a Paycheck Protection Program loan is August 8, 2020. 


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.

Next steps?

We will need several forms and documentation from you to process your application.  Please complete, execute, and return the following items.  

Step One: Complete SBA PPP Calculator

SBA PPP Calculator

Complete the following tabs:

  • Tab 1: Applicant Information
  • Tab 2: Annual Calc.
  • Tab 3: Compensation 
  • If you have seasonal labor expenses, also complete the Seasonal Calc. to determine which provides the greatest eligible loan amount. Be sure to include other eligible expenses on the lower part of the Annual Calc. tab.
  • Optional: The 8 Weeks Cost Tracker tab allows you to keep a register of expenses when it is time to submit a forgiveness request to SBA for the loan.
Step Two: Complete Borrower Application Form
  • The Borrower Application Form will be sent to you from your local branch via DocuSign.  
  • Complete the required fields, initial, and sign electronically. 
Step Three: Complete Borrower Attestation to Lender
  • The Borrower Attestation to Lender will be sent to you from your local branch via DocuSign.
  • Each paragraph must be initialed and document signed electronically. 
Step Four: Complete SBA PPP Loan Document Checklist

SBA PPP Loan Document Checklist

  • Lists the required documents needed when submitting application.  Check the items being sent and return document with application. 
Step Five: Return PPP Calculator, Supporting Documents, PPP Loan Document Checklist
  • Review the Secure Email Guide 
  • Securely email the 1) PPP Calculator, 2) necessary supporting documents, 3) and the PPP Loan Document Checklist to your loan officer. 

Once these completed documents are received, we will submit your application and update you on its status.

For questions or immediate assistance, please reach out to your loan officer.  


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

How to Calculate PPP Loan Amounts 

SBA Coronavirus Small Business Guidance & Loan Resources

SBA PPP Frequently Asked Questions for Lenders and Borrowers 

American Institute of CPAs - SBA Paycheck Protection Program Resources and Calculator

Department of Treasury - SBA PPP Fact Sheet  

Department of Treasury - How to Calculate Maximum Loan Amounts by Business Type