The U.S. Small Business Administration (SBA) and Treasury announced the PPP opening date to be Friday, January 15th, 2021. This second round of PPP will initally be reopened to lenders with under $1 billion in assets and will open for all lenders, regardless of size, on Tuesday (1/19/2021).
Options for starting the application process. Please contact us with any questions.
- Reach out to your loan officer
- Call 937-866-2455 (Monday - Friday, 8:30 am to 5:30 pm, ET) to speak with a representative
The new COVID-19 relief package, signed into law on December 27 2020, provides for updates to the Paycheck Protection Program, including new loans, forgiveness on existing loans, and second draw loans. Please see the latest information available from the SBA here. Farmers & Merchants Bank will participate in the second draw of PPP loans and will continue to keep you updated regarding the timing and information of this next round.
- The Bill indicates that PPP borrowers will have the following PPP loan options:
- If you are a first-time PPP borrower, you can apply for a PPP loan using the original PPP loan program criteria and terms. See the SBA guide to see if you are eligible.
- Borrowers interested in a second draw PPP loan will have different eligibility criteria such as businesses with 300 employees or less that experienced a 25% reduction in gross revenues compared to 2019, among other eligibility criteria. Second loans may be in an amount equal to 2.5 times monthly payroll costs up to $2 million for either (a) the 1-year period before the date on which the loan is made or (b) calendar year 2019 (note certain hard-hit industries, such as hospitality, may obtain a second loan in an amount equal to 3.5 times monthly payroll costs up to $2 million). Your current PPP loan does not need to be forgiven to get a second loan. The SBA is writing guidance for second PPP loans and we will share the full details once we have them. See the SBA guide to see if you are eligible.
- The PPP round 2 loan proceeds must be used on eligible expenses (new eligible expenses have been added) within the borrower’s elected covered period. Non-payroll expenses have been expanded to also include costs of certain business software or cloud computing services, certain uninsured property damage costs from public disturbances during 2020, certain supplier costs, and certain worker protection expenditures.
- Loan Features:
- 1% annual percent rate
- Up to 100% forgiveness
- 5 year note with 10 month payment deferral
- No fees
- The Bill also makes clarifications to the tax treatment of eligible expenses and forgiveness. We recommend that you contact your accounting or tax advisor for more information.
- When the borrower applies for forgiveness the borrower may use the 8-week or 24-week covered period. The borrower may also use a covered period that is between 8-24 weeks.
- We will keep this site updated regularly and communicate with customers as more information becomes available.