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Hurdles remain with PPP loans, deadlines extended

A two-month extension for the Paycheck Protection Program now heads to the President’s desk after the U.S. Senate passed legislation Thursday.

Dave Armstrong with GreenStone Farm Credit Services says some applicants who received first draw loan forgiveness under round one of the program are ineligible for it in this second round which now closes at the end of May.

“There was kind of a consequence to that,” he says.

He says as a farm credit lender, his company has never worked with the Small Business Administration before the pandemic and changes have occurred daily with programs which has been horrendous for small business owners.

“We had some of our employees working a third shift, midnight to 4 a.m.—have any of you head of bankers working midnight to 4 a.m.? — keying PPP applications because that was the only time we could get them into the SBA portal,” he explains.

Armstrong presented about the financial health of the farm sector during Michigan’s House Ag Committee meeting during Ag Week.

The American Rescue Act also adds $7.75 billion to PPP along with creating a $25 billion fund for local restaurants.