PPP Guidance 2021

PPP Loan Forgiveness & PPP Flexibility Act


September 2021:

We have received reports that Farmers State Bank customers who received Payroll Protection Program funding are receiving mailings regarding "eligibility of additional financing."  This is not a notice of additional PPP funding.  At Farmers State Bank, we are committed to protecting our customers' personal information, and the bank does not sell or otherwise distribute personal information to non-affiliated third parties. Regardless of what lender a consumer works with, however, some information about PPP loans is public record, and this is how scammers and other businesses capitalize and obtain your contact information.

If you receive a mailing similar to this, please note that this is an offer to apply for funding through a different company that is not affiliated with Farmers State Bank.  If you have any questions or concerns, please do not hesitate to contact us at 217-285-5000. 

May 5, 2021:  

The Small Business Administration announced yesterday that Paycheck Protection Program funding has been exhausted and that the PPP application portal stopped receiving applications yesterday for loans.  

March 31, 2021:  

On March 30, 2021, President Biden signed into law H.R. 1799, a bill extending the Small Business Administration's Paycheck Protection Program.  The PPP Extension Act extends the program until May 31, 2021, allowing two more months for loan applications.  The extension also gives the SBA 30 additional days to process loan applications made by the new May 31 deadline.  

March 15, 2021:  

As of March 14, 2021, the PPP Platform has been enabled to accept 2nd draw applications for Borrowers who submitted their first draw in calendar year 2021. 

To ensure successful processing, please note that to obtain a 2nd draw, your 1st draw PPP Loan must be considered fully disbursed by SBA processes.  The requirements to obtain a 2nd draw PPP loan remain unchanged as part of this process.  As a reminder, the Economic Aid Act provides that a Second Draw PPP Loan may only be made to an eligible borrower that (i) has received a First Draw PPP Loan, and (ii) has used, or will use, the full amount of the First Draw PPP Loan on or before the expected date on which the Second Draw PPP Loan is disbursed to the borrower.  The "Second Draw" program is for small businesses, non-profits, sole proprietors, and independent contractors who have exhausted their initial PPP loan.  The program will make new loans through May 31, 2021 (changed to reflect new date in March 31st update), or until the new funding is exhausted.  Please note that funding has been exhausted as of May 4, 2021. 

Eligibility: You are eligible for a second draw loan if you have exhausted your first PPP loan and

    • You have less than 300 employees, and
    • You have experienced a greater than 25% reduction in gross receipts during either the first, second, third or fourth quarter in 2020 relative to the same quarter in 2019 or on an annualized basis.

In addition: The SBA is adding two additional organizational types to better support the Schedule C application process. Single Member LLCs, and Qualified Joint-Venture (spouses), can be utilized when utilizing the Schedule C gross income PPP calculation. 

On March 4, 2021, the Small Business Administration issued an interim final rule (IFR) implementing the recent changes to the Paycheck Protection Program.  The IFR allows individuals who file an IRS Form 1040, Schedule C, to calculate their maximum loan amount using gross income.  SBA has issued updated forms for borrowers reflecting these changes and step-by-step loan amount calculations.  

Please refer to the tabs below for updated Interim Final Rule and new Application forms.     

What do Borrowers Need to Know and Do? 



Any loan made under the SBA's Paycheck Protection Program must be submitted to and approved by the SBA.  There is limited funding available and so all applications submitted will not be approved and funded by the SBA.  Farmers State Bank is participating in the Paycheck Protection Program to help businesses impacted by the economic impact from COVID-19.  However, Farmers State Bank anticipates high volume and there may be processing delays and system failures along with other issues that interfere with Farmers State Bank taking your application or submission of any application to SBA.  Farmers State Bank does not represent or guarantee that it will take your application or submit any applications taken before SBA funding is no longer available or at all.  By using Farmers State Bank to seek a Paycheck Protection Program loan, you agree that Farmers State Bank is not responsible or liable to you (i) if your application is not taken by Farmers State Bank or any application is not submitted to the SBA until after SBA stops approving applications, for any reason or (ii) if your inquiry or any application is not processed. You also forever release and waive any claims against Farmers State Bank concerning failure to obtain a loan.  This release and waiver applies to but is not limited to any claims concerning Farmers State Bank's (i) pace, manner or systems for processing or prioritizing your inquiry or any resulting applications, or (ii) representations by Farmers State Bank regarding the application process, the Paycheck Protection Program, or availability of funds. Participation in the SBA Paycheck Protection Program is subject to confirmation and review of payroll and financial information. Farmers State Bank will not pay fees to or otherwise compensate anyone acting as an agent of the business for advising on or assisting in the preparation of the Paycheck Protection Program application or otherwise. This release and waiver supersedes any prior communication, understanding or agreement on the issues set forth herein.