In these uncertain economic times,it may be worth your time to check into this program. It could help offset some farm labor costs.
Summary
The CARES Act authorized the Paycheck Protection Program to help small businesses keep employees and bring back employees that have been laid off due to the COVID-19 emergency. The program is designed to help small businesses by providing 100% guaranteed loans from the SBA. Loan amounts can be up to 2.5 times the business’s average monthly payroll costs with a maximum of $10 million. In addition, the loan can be forgiven if payroll is maintained and loan proceeds are used for specified expenses and an appropriate percentage is used for payroll expense.
Farmers qualify under the program as self-employed individuals and sole proprietors. Farmers with a considerable amount of hired labor (payroll) should especially evaluate if they meet all the eligibility and certification requirements. Farmers with limited or no payroll may also qualify based on their net self-employment income. However, lenders and others are waiting for additional guidance on how farmers and other self-employed individuals are to submit their applications and what will be the rules governing the definition of “payroll” for determining loan amounts, loan proceed uses and determining the amount of loan forgiveness.
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