Barring a last-minute extension by Congress, farmers and others have just a few days remaining to apply for a Paycheck Protection Program (PPP) loan. The deadline to apply is March 31, although there has been discussion in Congress of extending that deadline into May.
Regardless, attorney Nick Jellum says the program is based on the availability of funds, so it could pay to apply as early as possible.
PPP is a part of the coronavirus stimulus plan under the 2020 CARES Act and provides forgivable loans up to $10 million.
A number of farmers wrongly believe they don’t qualify for the assistance, according to Jellum.
“I think there’s a misconception that you have to have employees in order to qualify, which just isn’t true,” Jellum says. “This program is aimed to help not just corporations, such as farm corporations, but also small producers such as sole proprietors, self employed and independent contractors. There’s no minimum loan size, which is great. I’ve helped borrowers and lenders on loans as small as $500, but all the way up to the maximum loan of $10 million, as well. So it really is meant to help everybody in the industry.”
And he says the funds can be used for more than just payroll.
“It really can be a source of income replacement,“ he says. “They can use the proceeds for rent expenses, such as their land, rent payments that are currently due, utility payments, certain costs and expenses with their suppliers, and even certain interest payments on loans such as land loans and equipment loans.”
Additional information about the PPP application process for farmers is available from ACAP and The Loan Source at PPPLoanOnline.com.
Jellum discussed the PPP program on AgriTalk with Chip Flory. Listen to the conversation in the player below.
Related:
Paul Neiffer: Do I Qualify for More PPP Loans?
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SBA Finally Issues IFR on Schedule C SE Income for PPP
