Paycheck Protection Program

The U.S. House of Representatives overwhelmingly passed the Paycheck Protection Program Flexibility Act of 2020 (H.R. 7010), which amended several provisions in the Paycheck Protection Program. Many of the changes in the House bill provide flexibility in length of time for repayment and rehiring as well as how the loan proceeds must be spent. The Senate is considering its own version of the legislation along with the House version.

While farmers and ranchers seeking loans during the COVID-19 emergency welcome the flexibility the House and Senate bills would provide, outstanding questions remain related to rental income, H-2A workers and the availability of additional funds for those shut out of the program..

Through May 30, 2020, $510.2 billion in PPP loans have been approved. This loan value has been spread across 4,475,599 loans. Unfortunately, only $7.6 billion of those funds, or 1.5%, have been given to agriculture, forestry, fishing and hunting operations. Changes proposed in the House and Senate bills could make the program more attractive to farmers.