Farmers and Ranchers Eligible for Paycheck Protection Program

With the passage of the CARES act, the Federal Government has initiated the Paycheck Protection Program (PPP). The program, administered through the Small Business Administration (SBA) is designed to help small businesses keep their employees paid during these challenging times. The funding provides forgivable loans to small businesses to pay employees and keep them on the payroll. The program is limited to businesses with 500 or fewer employees, including some non-profits, the self-employed, startups, and cooperatives. Loans under this program can be for up to 2.5 months of your average payroll cost, plus an additional 25 percent for non-payroll costs. The highlight of the loan is that the portion of the loan that covers eligible expenses within an eight-week period from February 15, 2020, to June 30, 2020, is forgivable, as long as staff and payroll are maintained. Any proceeds of the loan not used for designated purposes must be repaid at a rate of 0.5 percent. The maximum duration of the PPP loans is two years.