Paycheck Protection Program Part 2
If you are a farmer or a rancher - you are a business owner - and the federal government has a once in a lifetime program to help you pay your people or pay your mortgage - or whatever else your issues are during the COVID-19 pandemic.
The Paycheck Protection Program has authorized up to $349 billion toward job retention and certain other expenses.
Jeremy Field is with the Small Business Administration and says farmers or ranchers who have been discouraged by the small business loan process in the past, will find this time - it's pretty easy.
The Paycheck Protection Program (“PPP”) authorizes up to $349 billion in forgivable loans to
small businesses to pay their employees during the COVID-19 crisis. All loan terms will be the
same for everyone.
The loan amounts will be forgiven as long as:
The loan proceeds are used to cover payroll costs, and most mortgage interest, rent, and
utility costs over the 8 week period after the loan is made; and
Employee and compensation levels are maintained.
Payroll costs are capped at $100,000 on an annualized basis for each employee. Due to likely
high subscription, it is anticipated that not more than 25% of the forgiven amount may be for
Loan payments will be deferred for 6 months.
When can I apply?
Starting April 3, 2020, small businesses and sole proprietorships can apply for and
receive loans to cover their payroll and other certain expenses through existing SBA
Starting April 10, 2020, independent contractors and self-employed individuals can
apply for and receive loans to cover their payroll and other certain expenses through
existing SBA lenders.
Other regulated lenders will be available to make these loans as soon as they are
approved and enrolled in the program.
Head to sba.gov for the latest information