USDA has released information stating that farmers do indeed qualify for the efforts in the third COVID-19 aid package relative to small business loans operated by the Small Business Administration (SBA), potentially increasing further the audience able to access the program.
The third COVID-19 stimulus plan contained $349 billion for the Paycheck Protection Program (PPP). The PPP is a guaranteed loan program administered by SBA, according to USDA, noting that the “purpose of the program is to support small businesses and help support their payroll during the coronavirus situation.”
USDA said that farmers are indeed eligible for the PPP loans. “Agricultural producers, farmers, and ranchers with 500 or fewer employees whose principal place of residence is in the United States are eligible,” USDA said. They noted that farmers are eligible if the farm has 500 or less employees, or it fits within the revenue-based sized standard, which is on average annual receipts of $1 million.
USDA also noted a farm can qualify if “it meets SBA’s ‘alternative size standard.’” That standard currently states that “a maximum net worth of the business not more than $15 million, AND the average net income Federal income taxes of the business for the two full fiscal years before the date of the application be not more than $5 million.”
Welcome
