Tips to Secure PPP Loans for Your Specialty Crop Operation
April 22, 2020 Last week, we conducted a poll asking if you intended to apply for Paycheck Protection Program (PPP) funds. Less than 24 hours after the poll went live, the U.S. government announced funds had run out.
Then Congress worked out another relief package that includes more payroll protection funds for small businesses. So the race is back on to secure loans before the fund run out.
The new bill includes $250 billion for PPP and $60 billion for Economic Injury Disaster Loans.
3 Links to Get You Started
The first round of funding had a lot of confusion around it. Here are a few tips from those who successfully navigated the process:
1. First, fill out the correct application form. You can find it on the Treasury Dept. site.
2. Locate an approved lender. If your bank is on the approved list, you may want to start with it. Growers speaking off the record say banks gave preferential treatment to solid customers. That claim is unsubstantiated, but enough people reported it.
SBA has a website that allows you to look for eligible lenders by your location. It looks like there is a fairly robust list of approved banks. When we looked at 93908, a zip code just outside of Salinas, CA, it returned five locations in Salinas: U.S. Bank, Pinnacle Bank, 1st Capital Bank, and two Wells Fargo locations.
3. Follow the rules carefully. The PPP loans can be forgiven (i.e., transform into grants) if the specific rules outlined are followed correctly. As with any government program, the details matter.
The Treasure Department has an information sheet that may help you navigate the system.
Take the Poll
Since the initial funds dried up soon after we posted the poll, we’re keeping it open now that new funds are available. Please let us know if you plan to take advantage of the new relief funds. And let us know if you run into any barriers this time around.
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