Jul
Paycheck Protection Program (PPP) Updates
The Paycheck Protection Program (PPP) has reopened the application period until August 8, 2020. The PPP
original application period closed on June 30, 2020.
As a recap, PPP is a program administered by the U.S. Small Business Administration (SBA) with applications
being processed through an SBA-approved lending institution. While PPP is a loan, an important point to note is
that the loan will be fully forgiven if the funds are used for payroll costs, interest on mortgages, rent, and utilities
(at least 60% of the forgiven amount must have been used for payroll). Forgiveness is based on the employer
maintaining or quickly rehiring employees and maintaining salary levels. Forgiveness will be reduced if full-time
headcount declines, or if salaries and wages decrease. The period used to cover eligible costs and expenses has also
increased from 8 weeks to 24 weeks from loan disbursement, making it easier for PPP recipients to meet the 60%
payroll requirement. Special consideration under PPP is provided for seasonal businesses such as farming
operations.
More detailed information, including a list of SBA-approved lending institutions that process PPP applications can
be found HERE
PPP is a program you should definitely look into if you employ agricultural workers on your farming
operation!