Kansas Corn webinar on April 8 provided additional details
Ag Producers ARE Eligible for SBA Forgivable Loans Regardless of Size
- This program is available through June 30, small businesses can apply now and contractors/self-employed can apply starting April 10.
- The maximum loan amount is based on average monthly qualified payroll expenses times 2.5 plus an additional 25%.
- Loan is issued from your local bank, Farm Credit or credit union.
- Loan proceeds spent on qualified expenses (payroll, rent and mortgage interest) within eight weeks of the loan’s closure is forgivable, so long as staff and payroll are maintained.
- Proceeds not used for qualified expenses must be repaid at a rate of 1% for up to two years.
- We realize that given these unprecedented times, the loan amount might not be enough for many operations, but it can be an important tool to utilize.
- Financial institutions are also faced with unprecedented challenges including facility closures and labor challenges, so participating in this program may or may not be as straightforward as walking into your local branch and filling out an application.
- In a typical year, the SBA administers $30 billion in funding, the PPP program alone is funded at $349 billion, so keep that in mind that the SBA is in uncharted territory as well.
- An overview of the program can be found here.
- Guidance for lenders can be found here.
- Guidance for borrowers can be found here.
- A memo from the Farm Credit Administration can be found here.
PPP Webinar at 7 pm, Wednesday April 8
Kansas Corn Growers Association will host a webinar on April 8, 2020 featuring experts from KCOE ISOM and the Kansas Bankers Association on the Paycheck Protection Program. The webinar is free, but you must register at the link below, limited to 500 participants. CLICK HERE TO REGISTER FOR THE WEBINAR Have a question ahead of time? Submit questions by email to Josh Roe firstname.lastname@example.org to be sure that your question is addressed by the experts.REGISTER FOR THE APRIL 8 PPP WEBINAR