Both chambers of Congress have voted to extend the application period for the federal Paycheck Protection Program (PPP), which is good news for farmers and ranchers.
PPP is designed to help struggling small businesses keep employees on their payrolls as they recover from the impact of COVID-19.
“Even as the economy gradually begins to reopen, farmers and ranchers continue to encounter enormous volatility within the markets,” RJ Karney, director of Congressional Relations with the American Farm Bureau Federation (AFBF), said. “The supply chains are rapidly reacting to the impact of the pandemic, and the Paycheck Protection Program is a guaranteed loan program which includes $670 billion for small businesses. This includes agricultural enterprises, to keep their employees on payroll.”
Karney noted the PPP is benefitting some farmers and ranchers, as long as they were able to get a loan from the program, but he said PPP needs to reach a lot more farmers and ranchers to benefit agriculture.
“According to the SBA data, a meager 1.5 percent of approved funding has gone to the agriculture, forestry, fishing and hunting sectors combined,” he said. “AFBF is working with Congress and the administration on changes that will allow more farmers and ranchers to participate in the program, especially since $130 billion remains in the program.”
The deadline to apply for paycheck protection was June 30, but Congress recently voted to extend the application window until Aug. 8.
Farmers and ranchers interested in the program need to take advantage of the extra time to get the paperwork done.
“This extension allows farmers and ranchers additional time to consult with their accountants, tax preparers and financial advisors about the PPP application to ensure all the proper documentation has been completed and reviewed before meeting with their lenders,” Karney said.
Click here for more information on the program.