Who is Eligible?
Small businesses and eligible nonprofit organizations, veteran organizations, and tribal businesses described in the Small Business Act, as well as individuals who are self-employed or are independent contractors.
*For a full list of details, please visit the SBA and U.S. Treasury websites linked below
I Already Received a PPP Loan, Can I Get a Second One?
Yes, if you used all proceeds from the first draw PPP loan
AND
Your business experienced a 25% reduction in gross revenue for one quarter in 2020 compared to the same quarter in 2019 (ex: 2nd quarter 2020 vs 2nd quarter 2019) OR you had a 25% reduction in gross revenue on your annual sales in 2020 vs 2019.
*For a full list of details, please visit the SBA and U.S. Treasury websites linked below. FMB will accept second draw PPP loan requests if your first draw PPP loan forgiveness application has been submitted.
How Much Can My Business Borrow?
2.5 times average monthly payroll
3.5 times average monthly payroll for businesses in NAICS code 72
Schedule C businesses: payroll costs are computed by taking line 31 (net profit) on the Schedule C form, capped at $100,000, plus any eligible payroll expense.
Partnerships: payroll costs are computed using net earnings from self-employment of individual general partners, as reported on IRS Form 1065 K-1, reduced by section 179 expense deduction claimed, unreimbursed partnership expenses claimed, and depletion claimed on oil and gas properties, multiplied by 0.9235, that is not more than $100,000, plus any eligible payroll costs for employees.
*For a full list of details, please visit the SBA and U.S. Treasury websites linked below
Loan Terms
1% interest rate
5-year term
No Fees
No Collateral
No personal guarantees
Full Loan Forgiveness Terms
PPP Loans made to eligible borrowers qualify for full loan forgiveness if during the 8-week to 24-week covered period following loan disbursement employee and compensation levels are maintained, at least 60% of the proceeds are spent on payroll costs and the remaining proceeds are spent on other eligible expenses.
*For a full list of details, please visit the SBA and U.S. Treasury websites linked below
How Do I Apply?
Contact your existing Loan Officer or give us a call at 1 (800) 382-0049 and ask for a Loan Officer to apply for a PPP loan.
For the most recent updates please go to the following resources:
SBA Website
U.S. Treasury Website
If your business received a PPP Loan that Farmers & Merchants Bank processed, you will need to submit the forgiveness request to us. You are eligible to submit the forgiveness request 8-weeks or 24-weeks from your loan date.
Step 1: Read the updated PPP Loan Forgiveness Guidelines
Step 2: Execute the PPP Loan Forgiveness Application. Carefully read the directions below. There are two versions of the application form, you will need to determine which one applies to you (forms are linked below).
You (the Borrower) can apply for forgiveness of your Paycheck Protection Program (PPP) loan using the SBA Form 3508EZ if you can check at least one of the three boxes below. If you cannot check one of the boxes below you need to submit your forgiveness request using SBA Form 3508.
☐ The Borrower is a self-employed individual, independent contractor, or sole proprietor who had no employees at the time of the PPP loan application and did not include any employee salaries in the computation of average monthly payroll in the Borrower Application Form (SBA Form 2483).
☐ The Borrower did not reduce annual salary or hourly wages of any employee by more than 25 percent during the Covered Period or the Alternative Payroll Covered Period (as defined below) compared to the period between January 1, 2020 and March 31, 2020 (for purposes of this statement, “employees” means only those employees that did not receive, during any single period during 2019, wages or salary at an annualized rate of pay in an amount more than $100,000);
AND
The Borrower did not reduce the number of employees or the average paid hours of employees between January 1, 2020 and the end of the Covered Period. (Ignore reductions that arose from an inability to rehire individuals who were employees on February 15, 2020 if the Borrower was unable to hire similarly qualified employees for unfilled positions on or before December 31, 2020. Also ignore reductions in an employee’s hours that the Borrower offered to restore and the employee refused. See 85 FR 33004, 33007 (June 1, 2020) for more details.
☐ The Borrower did not reduce annual salary or hourly wages of any employee by more than 25 percent during the Covered Period or the Alternative Payroll Covered Period (as defined below) compared to the period between January 1, 2020 and March 31, 2020 (for purposes of this statement, “employees” means only those employees that did not receive, during any single period during 2019, wages or salary at an annualized rate of pay in an amount more than $100,000);
AND
The Borrower was unable to operate during the Covered Period at the same level of business activity as before February 15, 2020, due to compliance with requirements established or guidance issued between March 1, 2020 and December 31, 2020 by the Secretary of Health and Human Services, the Director of the Centers for Disease Control and Prevention, or the Occupational Safety and Health Administration, related to the maintenance of standards of sanitation, social distancing, or any other work or customer safety requirement related to COVID-19.
SBA Form 3508EZ SBA Form 3508EZ Instructions
SBA Form 3508 SBA Form 3508 Instructions
We would like to provide further guidance on the application documents:
- SBA PPP Loan Number: Please leave this blank, Farmers & Merchants Bank will fill this in for you
- Lender PPP Loan Number: Please leave this blank, Farmers & Merchants Bank will fill this in for you
- PPP Loan Disbursement Date: This is the date listed on the top of the loan documents you signed with us. This is also the date that starts your 8-week or 24-week covered period to calculate your forgiveness eligibility date. [example: April 10, 2020 loan date + 8-weeks (56 days) = June 5, 2020 forgiveness eligibility date]
- EIDL Advance Amount: Enter only the advance amount (up to $10,000) you received, if applicable. This is not the full EIDL amount you received.
- EIDL Application Number: We are not able to look this number up. You must fill this in if you received an EIDL advance.
- If you are including covered mortgage obligations, it is for the interest portion only. Do not include your full payment amount.
Step 3: Collect all supporting documentation stated in the application
Step 4: Submit application packet to Farmers & Merchants Bank in one of the following ways:
- In person at one of our branches
- Emailed to the original lender who worked on your PPP loan
If you have questions about your forgiveness application, please feel free to reach out to the lender who originally worked on your request. Once you submit the forgiveness application, the bank has 60 days to review all documentation and submit the request to the SBA for approval. Once the SBA receives the request, they have up to 90 days to approve the forgiveness.
Thank you for the sacrifice your business has made during this unprecedented time and for trusting in Farmers & Merchants Bank to help you through this process.
How to Apply:
Applicants will be able to apply online at https://disasterloan.sba.gov/ela OR Call SBA's Customer Service Center at (800) 659-2955 OR email disastercustomerservice@sba.gov for more information on SBA disaster assistance.
Individuals who are deaf or hard of hearing may call (800) 877-8339.
Completed applications should be mailed:
U.S. Small Business Administration,
Processing and Disbursement Center,
14925 Kingsport Road, Fort Worth, TX 76155.
SBA Customer Service Representatives will be available to answer questions about SBA's Economic Injury Disaster Loan program and explain the application process.
