Congress recently appropriated $310 billion of additional funding to the Small Business Administration’s Paycheck Protection Program (PPP) and an additional $60 billion for the Economic Injury Disaster Loan (EIDL) program. RJ Karney, American Farm Bureau Federation congressional relations director, says farmers and ranchers are now eligible for the programs, but must act fast.
“What’s most critical right now is for farmers and ranchers to go meet with their tax accountants, to meet with their financial planners, and review these two programs, since farmers are eligible for both, and have the applications ready, because this money will go quickly,” urged Karney. “It’s anticipated that this will be gone within four days, which means it will not last this entire week.”
Karney says farmers must take different steps to apply for each program. “For the Paycheck Protection Program, farmers can apply for a PPP loan through an eligible PPP Lender. Farmers can apply on the SBA website for the Economic Injury Disaster Loan (EIDL) program.”
Meanwhile, a coalition including AFBF sent a letter to lawmakers seeking technical corrections to the Paycheck Protection Program. The coalition seeks to prevent hurdles that block access to the program for farmers.
“The list of priorities that Farm Bureau and 38 other agricultural organizations are working to correct for farmers in the Paycheck Protection Program is additional guidance for agricultural applicants, a definition for a primary place of residence, clarity on rental payments and business related items, and also expedited approval for applications for rural lenders,” noted Karney.
Over the weekend, the U.S. Treasury put out an updated FAQ on PPP loans, especially regarding those who file with a schedule F. https://home.treasury.gov/system/files/136/How-to-Calculate-Loan-Amounts.pdf.