Source: NCDA&CS, 4/3/20 Happy Friday!We have been getting a lot of calls and questions about the
different Small Business Administration loans and programs, especially the
Paycheck Protection Program (PPP). The National Association of State
Departments of Agriculture (NASDA) shared the following update that includes
several links directly to the Treasury Department and the Small Business
Administration. We thought you all might find it helpful: Last night, the Department of Treasury (Treasury) and Small
Business Administration (SBA) released an interim final rule on the Paycheck Protection Program (PPP) [home.treasury.gov]. Agricultural
producers are eligible to participate in the program and should reach out to
their bankers and/or agricultural lenders to apply immediately. While SBA
still needs to confirm some administrative details, loans will be
provided on a first-come, first-served basis and producers
can get started on the application now. = For a top-line overview of the PPP program CLICK HERE [home.treasury.gov] = Information for prospective borrowers can be found HERE [home.treasury.gov]
= The application for borrowers can be found HERE [home.treasury.gov] Below please find additional details about the PPP program.
NASDA will provide additional updates once outstanding questions are answered
by SBA. 1. Program
Eligibility a. All businesses (including farm and ranch businesses) are eligible for a PPP loan if they (1) have fewer than 500 employees; (2) meet the definition of a “small business concern”; and (3) are subject to SBA’s affiliation rules (unless those rules were specifically waived in the CARES Act). i. Waiting on SBA to clarify the definition of “small business concern” – do not anticipate any undue restrictions. ii. Waiting on SBA to confirm whether H2A workers are counted as “employees” for the purposes of determining size. b. Financial
institutions, including the Farm Credit system, will be responsible for
processing loan applications and administering the loan. 2. Loan
Terms a. Loan amounts are calculated based on the payroll costs for all employees whose “principal place of residence” is in the U.S. Please note that this
definition excludes H-2A workers, which will likely reduce the loan amount
available to some agricultural producers. b. This
loan has a maturity of 2 years and an interest rate of 1%. Loan payments will
be deferred for the first six months. c. The
loan will be fully forgiven if at least 75% of the funds are used for payroll
costs, and the remainder is used for interest on mortgages, rent, and
utilities. i. Forgiveness
is based on the employer maintaining or quickly rehiring employees and
maintaining salary levels. Forgiveness will be reduced if full-time
headcount declines, or if salaries and wages decrease. 3. The
best POC for questions on the Paycheck Protection Program is the Lender
Relations Specialist in your local SBA Field Office. The local SBA Field
Office may be found at https://www.sba.gov/tools/local-assistance/districtoffices [sba.gov]. Here is the link to the SBA PPP page: https://www.sba.gov/funding-programs/loans/coronavirus-relief-options/paycheck-protection-program-ppp and
a link to find an eligible lender: https://www.sba.gov/paycheckprotection/find. The SBA’s coronavirus resource page is here: https://www.sba.gov/page/coronavirus-covid-19-small-business-guidance-loan-resources. If we get other confirmed information regarding SBA, or other financial assistance programs, we will pass those along to you. If you look through these resources and continue to have questions, please let us know and we can see how we can assist in finding an answer. Also, we hope you are all following the Department’s social media pages as we have been sharing a lot of great information and resources on Twitter and Facebook. Thanks and have a great weekend. Respectfully, Laura
Kilian Legislative Director NC Department of Agriculture & Consumer Services Cell: (252) 425-1889
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