SBA Paycheck Protection Program (PPP)

SBA PPP Loan Forgiveness Applications for loans less than $150,000 

 

SBA Renews Paycheck Protection Program 

The Small Business Administration (SBA) has renewed its Paycheck Protection Program (PPP) by  authorizing up to $284 billion to help small businesses keep their workers on payroll during the  pandemic as well as cover other expenses. The renewed program also allows some borrowers to apply  for a second PPP Loan.

Carolina Farm Credit is now accepting loan applications through March 31, or until government funding 
is exhausted, for two types of loans:

First-draw loans
Available to first-time borrowers. First-draw loans can be used to cover payroll costs, including  benefits. Funds can also be used to pay mortgage interest, rent, utilities, worker protection costs related to COVID-19, uninsured property damage costs caused by looting or vandalism during 2020,  and some supplier costs and expenses for operations.

The SBA has provided this guidance on how to calculate the maximum loan amount for first- draw  loans and the necessary documentation to provide by business type.

First Draw Application Form

First Draw PPP Checklist

New First Draw Calculator

First Draw Increase Calculator

Second-draw loans
Available to eligible borrowers who previously received a PPP loan. Second-draw loans can be used  to cover payroll costs, including benefits. Funds can also be used to pay mortgage interest, rent,  utilities, worker protection costs related to COVID-19, uninsured property damage costs caused by  looting or vandalism during 2020, and some supplier costs and expenses for operations.

Borrowers are generally eligible for second-draw 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 this guidance on how to calculate the maximum loan amount for second- draw loans and the necessary documentation to provide by business type.

Second Draw Application Form

Second Draw PPP Checklist

Second Draw Calculator

For more information, visit the SBA website. Contact your Carolina Farm Credit loan officer for assistance.