Western AgCredit is now Accepting Applications for PPP Loans

Western AgCredit is now accepting applications for SBA’s Paycheck Protection Program (PPP) from current customers. These relief loans are part of the Coronavirus Aid, Relief, and Economic Security Act (CARES ACT) signed by President Trump on March 27, 2020.

This $2 trillion relief legislation authorized $349 billion for the PPP to help small businesses that are suffering economically. Although most farmers and ranchers have been able to continue to operate during this challenging time, there are several factors impacting profitability such as material price declines as product distribution channels have been disrupted that make this program important to agriculture.

Applying in a timely manner is essential because the initial allocation of $349 billion is expected to go quickly. However, additional money may become available since legislation has already been proposed to authorize more funding to this program.  

Western AgCredit is pleased to offer PPP loans to assist farmers and ranchers. Please see the additional information below on eligibility and program parameters as well as learn how to apply.

Eligibility and Program Parameters

  • Businesses with less than 500 employees and sole proprietors are eligible
  • Loan amount is determined based primarily on documented payroll-related costs, not to exceed $10 million
  • All loans are 2-years with 1.0% fixed interest rate
  • No payments for the first six months followed by 18 monthly principal and interest payments
  • If workforce and payroll is maintained, SBA will forgive the portion of the loan proceeds used to cover the first 8 weeks of payroll (must be 75% of forgiven amount) and interest on mortgages, rent and utilities (remaining 25% of forgivable amount)  

For more detailed information, see the PPP Information Sheet. Click Here

Required Documentation

  • Completed SBA PPP Loan Application Click Here.
  • Completed PPP Loan Worksheet: Click Here.
    This worksheet will help you determine the amount of money you qualify for and what portion of those funds are eligible to be forgiven.
  • Payroll documentation which may include:
    • IRS Form 941 or 943
    • IRS Form W-3 (summary of all W-2’s)
    • Health insurance premium statement, including vision and dental insurance
    • Retirement plan employer contribution report
    • Payroll processor reports
    • Self-employed – 2019 IRS Tax Returns with Schedule SE

 

To Apply

Please contact your loan officer or your local branch for more information and assistance with the application process.

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