If you have questions regarding the Paycheck Protection Program (PPP), please email us at: email@example.com
PPP Second Draw Program 2021
On January 6, 2021, the SBA released initial guidance outlining some details of the second round of the Paycheck Protection Program. Missing from the guidance though was the date that the application portal will reopen for this new round of PPP that totals up to $284 billion. The Farmers Bank will continue to watch for the date of reopening.
The SBA issued two interim final rules on 1/6/2021 that provide the initial guidelines for the next round of PPP borrowing.
The first interim final rule noted that “most of this document restates existing regulatory provisions to provide lenders and new PPP borrowers a single regulation to consult on borrower eligibility, lender eligibility and loan application and origination requirements, as well as general rules on increases and loan forgiveness for PPP loans.”
The second interim final rule governs second-draw loans that are now available for borrowers with 300 or fewer employees, which saw a 25% or greater revenue drop in 2020 compared to 2019 and that have used the full amount of their first-draw PPP loan. The SBA declared that “Second-Draw PPP Loans are generally subject to the same terms, conditions and requirements as First-Draw PPP Loans.” The maximum loan amount is $2 million or two and a half months’ worth of average payroll costs, whichever is less. The rule covers several calculations to determine eligibility and loan amounts.
The Farmers Bank is currently working to develop a digital application tool for the next round of PPP.
Please continue to check The Farmers Bank website for current updates on the next round of PPP. Resources and current guidelines can be found at SBA.gov & Treasury.gov