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Paycheck Protection Program

On December 27, 2020, President Trump signed the Economic Aid Act into law. The new legislation provided much needed stimulus to the United States economy as COVID-19 continues to impact the entire country. Included in this bill was $284.45 billion allocated to the SBA Paycheck Protection Program (PPP) to fund both first time and “second draw” loan requests.

In continued support of the communities in which we serve, Farmers National Bank will participate in this latest round of Paycheck Protection Program loans. The SBA has announced that it will begin taking applications from larger banks on Tuesday January 19, 2021. We will be accepting applications through our on-line portal, please see below for the portal link.

The following will provide a general overview of program changes as presented in the legislation:

  • Includes PPP funding for first-time applicants of the program and provides a “second draw” loan specifically for smaller and harder hit businesses.
    • In order to make the application process more efficient please: download/print and complete the appropriate application package, collect required documentation as outlined on the respective checklist and complete the provided Loan (excel based) calculator to assist in determining your eligible PPP loan amount prior to entering the online Vikar portal. 
  • New Eligible Expenses:
    • Operations expenditures: Payment for any software, cloud computing, and other human resources and accounting needs
    • Property damage costs: Costs related to property damage due to public disturbances that occurred during 2020 that are not covered by insurance
    • Supplier costs: Costs to a supplier for goods prior to taking out a loan that are essential to the operations. Supplier costs of perishable goods can be made before or during the life of the loan.
    • Worker protection expenditure: PPE and adaptive investments to help comply with federal health and safety guidelines or any equivalent state and local guidance related to COVID-19 between March 1, 2020 and the end of the national emergency declaration
  • New Eligible Borrower Business Types:
    • Allows FCC license holder and newspapers with more than one physical location to apply for financial assistance. The bill also makes 511 public broadcasting stations at colleges and universities eligible.
      • The business must have less than 500 employees per physical location
    • 501c6 organizations such as business leagues, chambers of commerce, real estate boards, boards to trade, and professional sports leagues with certain stipulations are eligible to apply
      • The organization must have less than 300 employees
    • Simplified Application for Small Loans:
      • The bill establishes a simplified application process meant to streamline approval for loans under $150,000
        • The SBA must establish a form for the simplified application within 24 days of enactment of the stimulus package (estimated by January 20, 2021)
    • Loan Terms:
      • The loan will have a term of 5 years with a fixed interest rate of 1.0% per annum
      • In order to receive full forgiveness, 60% of the loan proceeds must be used for payroll related expenses and 40% may be used for other eligible uses as outlined in the program
      • New round funding first time PPP borrowers may refinance their EIDL loan, if applicable
      • Business may borrow up to 2.5 times the average monthly payroll costs in the one year prior to the loan or calendar year
      • Businesses assigned to NAICS code 72, the accommodation and food services sector, can receive a loan of up to 3.5 times their average monthly payroll costs
      • No loan can be greater than $10MM for first draw PPP loans and no greater than $2.0MM for second draw PPP loans
      • Seasonal employers may calculate the loan amount based on a 12-week period from 2/15/19 to 2/15/20. The bill defines seasonal employers as a business that operates for no more than seven months in a year or earned no more than one-third of its receipts in any six months in the prior calendar year
    • “Second Draw” Loan Eligibility:
      • “Second draw” loans are meant for smaller and “harder-hit businesses” that already used or will use the full amount of their first PPP loan prior to making application
      • In order to receive a second PPP loan, businesses must show at least a 25% reduction in gross receipts in any quarter of 2020 relative to 2019.
      • If the applicant was NOT in business in 2019, but was in operation as of February 15, 2020 and has gross receipts during the second, third, and fourth quarter of 2020, then the applicant may compare those receipts to the first quarter 2020 information.
    • “Second Draw” Forgiveness:
      • Borrowers are eligible for loan forgiveness equal to the sum of their payroll costs, mortgage or rent, and utility payments as well as operations expenditures, property damage costs, supplier costs, and worker protection costs.
      • Requires a 60/40 cost allocation between payroll and non-payroll costs in order to receive full forgiveness, respectively
    • Funding of new PPP loans extends through March 31, 2021
    • Borrowers can choose a “Covered Period” of eight and twenty-four weeks
    • Economic Injury Disaster Loan advances will no longer be deducted from Paycheck Protection Program loan forgiveness amounts. The SBA will be remitting payment to the bank to cover any previously deducted EIDL advances from PPP borrower forgiveness amounts. Impacted borrowers will be contacted accordingly regarding this updated guidance from the SBA.
    • A new provision was included which would increase the amount of an original PPP loan closed in 2020 when borrower meets limited specific criteria. Please contact the Loan Officer assigned to your region using the contact sheet below for additional information regarding qualifications for this provision.

Vikar Portal Registration Link

Contact Us:
Please do not send PPP applications or sensitive information via the below channels as they are not a secure means of communication and all such information will not be accepted by the bank. PPP applications should be directed to the bank using the secure Vikar portal registration link above or by requesting a manual submission application below.

For General Inquiries or to Request a Manual Completion Borrower Package please contact: PPPGeneralInquiries@farmersnb.com
For Online Portal Technical Support please contact: TechsupportPPP@farmersnb.com
To speak directly to a Commercial Loan Officer please contact by your geographic region using the Contact Form.