Yankee Farm Credit is now accepting First Draw and Second Draw Paycheck Protection Program (PPP) loan applications from existing Yankee Farm Credit members. SBA and U.S. Treasury officials believe that the new PPP will have ample funding to cover the expected loan demand. It is important to note that the Covid-relief legislation changed eligibility rules for PPP substantially. Under the new program, there are two types of loans available, "First Draw" and "Second Draw".
The "First Draw" loan program is a continuation of the previous PPP loan program. Both new PPP loan borrowers and individuals who previously received a PPP loan – and whose loans are not already forgiven – are eligible. Current PPP loan borrowers can apply for additional funding on the same loan under new eligibility criteria.
The "First Draw" program updates include:
- PPP borrowers can set their PPP loan’s covered period to be any length between 8 and 24 weeks to best meet their business needs;
- PPP loans will cover additional expenses, including operations expenditures, property damage costs, supplier costs, and worker protection expenditures;
- The Program’s eligibility is expanded to include 501(c)(6)s, housing cooperatives, direct marketing organizations, among other types of organizations;
- The PPP provides greater flexibility for seasonal employees;
- Certain existing PPP borrowers can request to modify their First Draw PPP Loan amount; and
- Certain existing PPP borrowers are now eligible to apply for a Second Draw PPP Loan.
- Self-employed farmers can now use Schedule F line 9 gross income (up to $100,000) instead of net income to calculate loan amount.
The "Second Draw" program will be limited to businesses that can demonstrate at least a 25% drop in revenue due to Covid impacts. This should be your first test to determine eligibility.
- Previously received a First Draw PPP Loan and will or has used the full amount only for authorized uses;
- Has no more than 300 employees; and
- Can demonstrate at least a 25% reduction in gross receipts between comparable quarters in 2019 and 2020.
Below are links to several SBA PPP documents with current updates and additional detail.
Updated First Draw Forms
Form 2483 – First Draw Borrower Application [nam04.safelinks.protection.outlook.com] (Updated 1/8/21)
Form 2484 – First Draw Lender Guaranty Application [nam04.safelinks.protection.outlook.com] (Updated 1/8/21)
Second Draw Forms
Form 2483-SD – Second Draw Borrower Application [nam04.safelinks.protection.outlook.com] (Released 1/8/21)
Form 2484-SD – Second Draw Lender Guaranty Application [nam04.safelinks.protection.outlook.com] (Released 1/8/21)
Guidance & Resources
Accessing Capital for Minority Underserved, Veteran and Women-Owned Business Concerns Guidance [nam04.safelinks.protection.outlook.com] (Released 1/6/21)
Top-Line Overview of First Draw PPP Loans [nam04.safelinks.protection.outlook.com] (Released 1/8/21)
Top-Line Overview of Second Draw PPP Loans [nam04.safelinks.protection.outlook.com] (Released 1/8/21)
Interim Final Rule #1 – PPP as Amended by Economic Aid Act [nam04.safelinks.protection.outlook.com] (Released 1/6/21)
Interim Final Rule #2 – PPP Second Draw Loans [nam04.safelinks.protection.outlook.com] (Released 1/6/21)
Patience is also recommended for forgiveness application as SBA works to finalize the simplified forgiveness process mandated by the Covid-relief legislation. SBA has 24 days from the enactment of the legislation to create simplified forgiveness applications.
Yankee looks forward to serving it members eligible for either "First Draw" or "Second Draw" PPP loans, and is ready to accept applications. As well as through the forgiveness process.
If you have any question please contact: