Source: NATIONAL SUSTAINABLE AGRICULTURE COALITION, 6/25/20


Editor’s Note: This is a guest post written by the Farmers’ Legal Action Group. Find earlier reporting from FLAG on the Paycheck Protection Program (PPP) on their website, and find NSAC’s initial reporting on PPP on our blog.

The deadline for a COVID-19 relief program that can be useful to many farmers is Tuesday, June 30, 2020.  The Paycheck Protection Program (PPP) is run by the Small Business Administration (SBA). Farmers who have not already applied may want to consider applying for PPP, in part because recent changes to the rules may make the program more appealing to farmers.

Under PPP, self-employed people, including farmers, can receive low-interest loans that may be forgiven. The loans are fully forgiven if the farmer spends at least 60 percent of the loan money on payroll costs (including wages and certain employee benefits) over the next 24 weeks. The remainder must be spent on rent, utilities, or mortgage interest payments in order to be fully forgiven. To the extent the PPP loan is not forgiven, the interest rate is 1% and the repayment period is five years. There are no collateral requirements. In other words, even if the PPP loan is not forgiven, the loan terms are more favorable than the terms of many farm loans.

For the full story, click here.