On April 24, 2020, President Trump signed into law the Paycheck Protection Program and Health Care Enactment Act. The law provides an additional $484 billion for COVID-19 relief, focusing primarily on small businesses and health care. The law also expands eligibility for disaster loans to agricultural enterprises. 

The SBA Paycheck Protection Program (PPP) is designed to provide a direct incentive for small businesses to keep their workers on the payroll during this unprecedented time. If your business has been affected by COVID-19, you could be eligible for the SBA PPP loan. 

Since time is of the essence, we encourage you to contact one of our lenders as soon as possible to inquire about your eligibility. The information out there about the PPP and other funding options can be overwhelming, and we are here to guide our small businesses and agricultural producers and help them not only survive this trying time, but thrive for years to come.

If you haven't applied yet and are interested, view the Application Guide below to view the documents needed to begin processing your application!


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As an SBA Approved Lender, our team is prepared to assist your business and committed to being a source of strength and helping families and businesses get through this challenging time.  

 April 27, 2020 SBA PPP Funding Update from Our President



The SBA Paycheck Protection Program (PPP) provides 8 weeks of cash flow assistance.  These loans are 100% federally-guaranteed and will be granted until June 30, 2020. These loans may be forgiven if the borrowers maintain their payroll or restore their payrolls afterward.

Please be prepared to provide your average monthly payroll as defined by the SBA and provide proof of payroll information, e.g., 2019 W-3, 2019 IRS Quarterly 940, 941, or 944 payroll tax reports, 2019 Personal Tax Returns and Business Tax Returns.  

You are eligible to apply if you meet the following criteria:

  • Your business is not a governmental entity
  • You have an existing Farmers State Bank Business Checking Account that has been active since February 15, 2020
  • You're authorized to borrow on behalf of the business
  • Your business hasn't applied for a loan under the Paycheck Protection Program with Farmers State Bank or any other financial institution

The loan may be eligible for forgiveness, but only amounts meeting SBA criteria:

  • Forgiveness is  not automatic.  You may request forgiveness of some or all of the principal balance of the loan
  • Forgiveness is only available if you use the funds for certain purposes as permitted by the SBA
  • If you request forgiveness, you must provide documentation and must certify that the loan funds were used for SBA qualifying purposes.  
  • The amount forgiven may be subject to certain limitations and reductions in certain circumstances; for example, if you have reductions in the number of employees or employee compensation and only 25% of the forgiven amount may be for non-payroll purposes. 
  • The borrower will be responsible, under the loan, for any amounts not forgiven and will become payable with monthly payments of principal and interest
  • The SBA may limit the time frame by which you will need to ask for forgiveness


If you are considering the Paycheck Protection Program, we recommend you review the following documents in addition to the ones above: 

 PPP-Updated FAQs (May 6, 2020)

 PPP-Beneficial Ownership Documentation

 Small Business Guide & Checklist 

Independent Contractor's Guide

Here are questions you may be asking – and what you need to know: 


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.