PPP Loan Second Draw

IMPORTANT NOTICE:

The Small Business Administration is no longer accepting Paycheck Protection Program (PPP) Loan applications from most lenders, including American AgCredit. The current round of PPP funding had been set to expire on May 31, 2021.

Going forward, the SBA will only accept new applications from community financial institutions. The SBA will continue to fund approved PPP applications that are in progress from other lenders but will not accept any new applicants.

Please visit the Small Business Administration’s PPP web page for the latest information: https://www.sba.gov/funding-programs/loans/coronavirus-relief-options/paycheck-protection-program

Please be advised that the covered period on your first draw PPP loan will conclude on the day the funds are disbursed for your second-draw PPP loan, as the two loans cannot overlap.

If you are a sole proprietor Schedule F or Schedule C filer who received a first draw PPP loan after Jan. 1, 2021, please be sure you have allowed enough time to incur the appropriate amount of expenses to achieve full forgiveness of your PPP loan.

Example – If you are a sole proprietor with no employees who received a PPP loan for $20,833, that amount represented compensation to you. Your covered period will need to be at least 2 ½ months to have the loan amount covered 100% by your payroll expense and therefore receive full loan forgiveness. If you choose a covered period shorter than 2 ½ months, you will need to declare non-payroll expenses to achieve full forgiveness. We strongly recommend that you consult with your accountant before filing for forgiveness.

PPP LOAN CALCULATION FOR SECOND DRAW

Given that you have had a PPP loan in the past you may be eligible for a Draw Two loan.  Eligibility for this loan is determined by proving there was a drop in gross revenues of 25% or more between the same quarter in 2019 compared to 2020 or a total annual drop in revenue between 2019 and 2020.  In order to prove you have experienced a 25% reduction in revenue during this time period, you can use one of the documents below;

• Internal quarterly statements
• Bank/Checking Statements from the corresponding quarters
• Tax returns

We will need you to complete one of the spreadsheets below that best describes your business.  These spreadsheets will help you in calculating the numbers that you will use to complete the actual application.  During the application process, you will be asked to upload this spreadsheet, and other required documents, to the application site in order to complete the process. One of the documents you will be asked to upload will be used to verify the fact that you were in business on Feb 15, 2020.  The following are examples of what documents you can use to verify you were in business.

• 1^st quarter payroll summary (for businesses with employees)
• Bank statement or invoices (for business without employees)

Below are some important points to keep in mind depending on your specific circumstances;

• If you received your first PPP loan through American AgCredit, the documents you uploaded during your first application will be viewable in the Dashboard section of your online application portal. You will not need to upload these documents a second time and you may find some of this documentation useful in completing the spreadsheet below.  (Click HERE for help on how to view your past documents in the application portal)
• If you receive your first PPP loan through American AgCredit but you are using 2020 documentation to complete this application, you will need to upload these supporting documents during the application process.
• If you did not receive your First PPP Loan through American AgCredit you will need your SBA loan number, from your first PPP loan, to complete your application. Please reach out to your original bank and gain access to your SBA loan number before you start the application process. You will also need to upload all supporting documentation to the application portal in order to complete the application process

Please download and complete the correct calculation spreadsheet for your business from the options listed below. For additional support, please see the Application Guides under the associated calculators.

Standard PPP Loan Calculator

Seasonal PPP Loan Calculator

Click here to access the Seasonal Application Guide

New Business PPP Loan Calculator

Sole Proprietorship (Schedule C using Net Income) Loan Calculator

Click here to access the Schedule C Application Guide

Sole Proprietorship (Schedule C using Gross Income) Loan Calculator

Sole Proprietorship (Schedule C using Gross Income) with Employees Loan Calculator

Sole Proprietorship (Schedule F) Loan Calculator

Click here to access the Schedule F Application Guide

Sole Proprietorship (Schedule F) with Employees Loan Calculator

Click here to access the Schedule F with Employees Application Guide

Partnership Loan Calculator

Click here to access the Partnership Application Guide

CLICK HERE TO START YOUR APPLICATION

If you already have an application in progress, please remember to log in using the same ID and password you created. Please do not start a new application.

If you have any questions, please contact your relationship manager or the customer service team at 1-800-800-4865 for assistance.