SBA Paycheck Protection Program (PPP)

More details about PPP loans.

SBA Paycheck Protection Program (PPP)

Please note: As of March 31, AgChoice is no longer accepting new PPP loan applications. 

The most recent COVID-relief legislation signed into law on December 27, 2020 introduced many changes to the existing Paycheck Protection Program (PPP). The legislation:

  • Reopened First Draw PPP loans for first time PPP borrowers
  • Provided changes that may result in some borrowers applying for a First Draw PPP loan increase
  • Introduced new Second Draw PPP loans
  • Provided additional updates to the PPP loan forgiveness process

Learn more about the changes from Dan Brogdon in this blog post or listen to the changes in our podcast

Apply for a PPP loan 

First Draw PPP Loans – SBA reopened PPP for First Draw Loans the week of January 11, 2021.  If you did not receive a PPP loan previously, you may now be eligible. 

Second Draw PPP Loans – PPP now allows certain eligible borrowers that previously received a PPP loan to apply for a Second Draw PPP Loan with the same general loan terms as their First Draw PPP Loan.

Apply for First Draw PPP Loan Increase:

Those who received a First Draw PPP Loan and have not received loan forgiveness may be eligible for an increase based on rule changes. 

Situations eligible for increase include:

  1. Sole Proprietor Only: Calculation is now based on 2019 Gross Schedule F income instead of Net Schedule F income. This may increase your PPP loan by up to $20,833. 
  2. Partnerships Only: You may be eligible for an increase if you did not use K-1 net earnings from self-employment in your original calculation.
  3. Borrowers meeting the Seasonal Employer definition: Seasonal employers may choose any 12-week period from Feb 15, 2019 to Feb 15, 2020.  
  4. Restaurants Only: May include tips as wages if they did not previously report them.  
  5. You paid off your PPP loan prior to receiving forgiveness.    

Loan increases may not be requested for any reasons other the those specifically allowed by SBA. As of today, those reasons are the five listed above.  

To apply for a First Draw PPP Loan increase, you will need to submit a new SBA Form 2483 with the total revised First Draw loan amount. If you are a Sole Proprietor or Partnership, use the AgChoice First Draw PPP Loan Increase worksheet to help you determine the revised loan amount. 

Apply for PPP Loan Forgiveness 

After you receive and use PPP loan funds, you may apply for forgiveness. Remember, you have 10 months after the end of your covered period to apply. 

Before applying for forgiveness, determine if you qualify for a First Draw PPP loan increase. If so, obtain your increase first.    

PPP loans of $150,000 or less – Borrowers will need to sign a one-page form that they used funds appropriately and followed program rules. Use SBA Form 3508S - S Loan Forgiveness Application

PPP loans greater than $150,000 – Borrowers will need to go through a process similar to what was in place prior to the December 27, 2020 relief act. Links to applications are posted below. Borrowers with loans greater than $150,000 who choose either an 8-week covered period or 24-week covered period may choose to use our calculator tool: