Revised Rules for PPP Stand to Benefit Agriculture

WASHINGTON, DC – With the passage of the Consolidated Appropriations Act of 2021, Congress reauthorized the Paycheck Protection Program (PPP) and provided new rules related to agriculture. If signed into law, Section 13 addresses loan calculations for farmers and ranchers by establishing a specific loan calculation for the first round of PPP loans for those who operate as a sole proprietor, independent contractor, self-employed individual, who report income and expenses on a Schedule F, and were in business as of February 15, 2020. These entities may utilize their gross income in 2019 as reported on a Schedule F and lenders may recalculate loans that have been previously approved if they would result in a larger loan. It does apply to loans before, on, or after the date of enactment, but not for loans that have already been forgiven. In addition, Section 14 focuses on lenders and allows Farm Credit System Institutions to be eligible to make loans under the PPP as well. The PPP loan found wide popularity among small businesses and in rural communities. The benefits, however, also spilled over into community banks who by originating the loans, as part of the Congressional funding, were allowed to collect a percentage on every loan approved while borrowers paid no additional fees.
(SOURCE: All Ag News)