Paycheck Protection Program

Here. For Kentucky and Ohio Farmers Impacted By COVID-19.

Whether you live in Northern Kentucky or Greater Cincinnati or operate in another part of Kentucky, Heritage Bank is equipped to make your PPP application smooth and efficient. Out-of-market applicants are not required to open an account. Wire services will be waived. 

Contact Joshua Stevens at 859-869-2929 to get started. 

Learn more about PPP loans and how we are helping small businesses and regional farmers access COVID relief. 

What Farmers Need to Know About First Draw PPP Loans

• In 2020, farmers’ eligibility for PPP was based on 2019 net farm profits or losses, reported on IRS form Schedule F, Line 9 (Profit or Loss from Farming), making more than 30 percent of the nation’s self-employed, sole proprietor farmers ineligible for PPP loans.
• In 2021, farmers’ eligibility is based on their 2019 Schedule F gross income (up to $100,000).
• Loans are limited to 2.5 months of average monthly payroll with a $100,000 annual gross income cap. For example, a farmer or rancher with no employees could qualify for a $20,833 loan if the gross income  on the Schedule F, Line 9 for 2019 were at least $100,000, regardless of what the expenses were. If the farmer had employees, the loan amount can be increased by the same 2.5 months of the average monthly payroll for 2019.
• Farmers who received PPP loans in 2019 can recalculate their loan award using 2019 gross income, provided their 2019 loans have not already been forgiven. Farmers eligible for additional loans will receive the difference between the maximum loan allowed and the amount originally approved.
• The loan period runs from eight to 24 weeks, although there is flexibility designed to accommodate expenses related to seasonal help.
• Eligibility for larger farms registered as corporations and LLCs can be found at www.SBA.gov.

What Farmers Need To Know About Second Draw PPP Loans

•  Applicants must demonstrate a 25% decline in revenue for one quarter in 2020 when compared to a comparable quarter in 2019.
•  A loan is limited to 2.5 months of average monthly payroll with a $100,000 annual gross income cap. For example, a  farmer or rancher with no employees could qualify for a $20,833 loan if the gross income on the Schedule F, line 9 for 2019 were at least $100,000, regardless of what the expenses were. If the farmer had employees, the loan amount can be increased by the same 2.5 months of the average monthly payroll for 2019.
•  Rules applied to operations with more than one physical location still apply to second draw PPP loans with one exception: no location can employ more than 300 people.
• Applications for second draw PPP loans must be submitted by March 31, 2021.

Loan Forgiveness

• The PPP loan forgiveness process for loans of $150,000 or less has been streamlined. Loan recipients must document that 60% of loans were applied toward payroll expenses.
• The newest PPP legislation expands eligible expenses for PPP loans. Mortgage, rental and utility payments are still eligible expenses as well as property damage costs not covered by insurance, specific changes in supplier costs and worker protection expenses.
• The interest rate on unforgiven loans is 1%.

Important: Consult with your accountant or trusted business advisor about applying for PPP loans.