Last updated on January 22, 2021 by your Farmers & Stockmens Bank SBA experts.
PPP Second Draw Update
Starting Friday, January 15th the team has been processing the PPP Second Draw applications we’ve received from our clients. Farmers & Stockmens Bank is pleased to once again have been able to help businesses and employees during this continued time of uncertainty. We have processed nearly all the applications we’ve received to date.
Should we need additional information on a specific application, we will be in touch, otherwise you can assume your application is on track. Client’s will start hearing from the bank team shortly regarding next steps, including documentation for your Second Draw PPP loan.
Forgiveness Update
The bank will begin processing forgiveness applications for loans over $150,000 by the end of January. We are still waiting for final guidance from the SBA for loans less than $150,000 and will be in touch as information becomes available.
Second Draw Eligibility:
Following is a summary of the primary eligibility factors:
300 or fewer employees
Previously received a First Draw PPP loan and have fully exhausted the funds (i.e. eligible for full forgiveness)
Experienced a reduction in revenue in calendar year 2020, measured as follows – Applicant had gross receipts during the first, second, third, or fourth quarter in 2020 that demonstrate at least a 25 percent reduction from the applicant’s gross receipts during the same quarter in 2019 (for example, an applicant that had gross receipts of $50,000 in the second quarter of 2019 and had gross receipts of $30,000 in the second quarter of 2020 experienced a 40 percent revenue reduction between these two quarters)
Borrowers should review the full Interim Final Rule (available on our website, here) for any questions and/or to see the detailed explanation of eligibility.
Application Information:
Complete and sign SBA Form 2483-SD (Please reference “Common SBA Second Draw PPP Application Errors” at the bottom of this page as you fill out the application)
For Loans less than $150,000 DO NOT submit any revenue reduction supporting documentation at this time. That information will be collected prior to or during the Forgiveness process.
For loans of $150,000 or more provide ONLY 2019 and 2020 Quarterly Income Statements for only the quarter that supports eligibility (25% reduction or more in gross receipts).
If you are utilizing 2019 payroll to calculate your loan amount (and we processed your first PPP loan) NO payroll information is required (we have it on file from your first PPP loan, please indicate that on the Revenue Reduction Worksheet)
ONLY If you are utilizing a base period different than the 2019 data that was used for your original PPP loan (this will be rare), please submit the following:
Applicant’s Form 941 and state quarterly wage unemployment insurance tax reporting forms from each quarter that was used calculate payroll OR
Equivalent payroll processor records
Evidence of any retirement and employee group health, life, disability, vision and dental insurance contributions, must be provided.
A partnership must also include its IRS Form 1065 K-1s
Please refer to the Interim Final Rule for this second draw PPP for complete requirements.
Applying:
Please note we will not accept incomplete applications, so do not submit until you can include the SBA Form 2483-SD.
Submit the following as scanned or digital attachments (we are not accepting hard copies) to seconddrawPPP@centralbancorp.com and copy your bank contact.
Provide any required supporting information outlined in the previous section
In the subject line of the email please include the name of the business that took out the initial PPP loan.
Do not submit more information than requested. Extra information and anything not specifically required will delay the processing of your request.
F&SB is wrapping up the implementation of a software platform that will automate the PPP application process for clients who wish to apply for new PPP loans. This will streamline and automate that process for new applications. If you have already submitted for your Second Draw PPP loan there is nothing you need to do at this time, we will process your application through the traditional process.
We do anticipate closing many of the Second Draw PPP loans through the automated system and accordingly you will be seeing an invitation to register in that portal in the near future. This portal will manage the eventual forgiveness of the Second Draw PPP loans as well.
Common SBA Second Draw PPP Application Errors
Note: If the Application is not completed in its entirety there is a high likelihood it will be returned.
Year of Establishment
Not years in business; year started/incorporated – 2015
NAICS Code
Located in upper left hand corner of tax return and is identified as “Business Activity Code” (doesn’t state NAICS)
The starting digits of “72” designate it as eligible for the 3.5x payroll (vs. 2.5x)
PPP First Draw SBA Loan Number
The Bank emailed all existing 1st Round Draw PPP Clients with this number
Contact your lender if you did not receive it
Question #3 on Affiliates
Need to provide a word document (or like) titled Addendum A with a list of the other companies/affiliates owned by the principals
Questions #4 and #5 need to be initialed
There is a designated area to initial near the body of the question
For Loans > $150,000.00
Complete the 2020 and 2019 Quarter over Quarter revenue section on front page of the SBA application
Revenue Reduction Worksheet required
Supporting documentation required – qtr. over qtr. income statements
For Loans < $150,000.00
We only need the SBA application
Should you have any questions, please don’t hesitate to reach out to your Banker or Relationship Manager.
With lifelong involvement in the cattle business, Jordan offers beneficial insight from both sides of the desk. With a master’s degree from the University of Colorado School of Banking, Jordan is committed to creating a better future for rural communities through considerate care with banking, real estate, and farm or ranch lending programs.
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Born and raised on a farm in Texas, Nick needs no translation when it comes to understanding the needs of farmers and ranchers. With a degree in Agricultural Business, nearly 20 years of banking experience, and a local wheat and corn operation of his own, Nick is personally passionate about extending the same level of care and consideration to every local resident. He specializes in agricultural lending, including farm and ranch real estate, and farm and ranch operating loans.
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Larry Fluhman moved to Clayton in 1976, and five years later married his wife, Jay, a Clayton native. Raised on a ranch North of Roy, New Mexico, Larry is still active in ranching activities and remains heavily involved in the community, including being a Trustee at First United Methodist Church, a member of Clayton Rotary Club, part of Union County Economic Development, and more.
Larry started at Farmers & Stockmens bank back in 1986 and joined the Board of Directors in 1992. With more than 40 years of banking experience, Larry brings a wealth of knowledge to the team and customers at Farmers & Stockmens Bank and looks forward to what the future holds for the community.
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A native of Clayton, Amy considers members of this community to be like family. As a consumer loan servicer proficient in auto loans, 4-H loans, student loans, home mortgages and more, she offers a personal touch for every client — whether conversing in English or Spanish. She is proud to work alongside clients long-term as the Bank’s Escrow Agent for Owner Finances.
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