Farmers and Ranchers Encouraged to Apply for Loans

WASHINGTON, DC – The Paycheck Protection Program (PPP) is part of the Coronavirus Aid, Relief, and Economic Security (CARES) Act, intended to provide American farmers, ranchers and small businesses with eight weeks of cash-flow assistance through 100 percent federally guaranteed loans. The program, capped at $349 billion, offers funds to pay up to 8 weeks of payroll costs including benefits. Funds can also be used to cover the interest on mortgages, rent, and utilities. When used for the approved costs, the loan will be completely forgiven. Administered through the Small Business Administration (SBA), applications are now being accepted for all businesses with fewer than 500 employees. On April 10th, the SBA will begin accepting loan applications from independent contractors and self-employed individuals. Loans are being originated by all FDIC institutions and any Farm Credit System institution that is participating. There are no origination or business fees associated with the PPP loans and the amount of any loan forgiveness will not be included as taxable income.