Paycheck Protection Program Receives Additional Funding

Combine
24 Apr 2020
Good news if you have not already applied for the Paycheck Protection Program. The Paycheck Protection Program has received additional funding of $320 billion and you can now send in your application to AgCountry if you qualify. Program guidelines can be found at SBA PPP. Again, this is on a first-come-first-serve basis and funding is expected to be gone very quickly.  
 
There have been many questions on this program as it relates to farmer eligibility. One question that consistently gets asked is on eligibility of self-employed or a sole proprietor. If you are self-employed or a sole proprietor, were in operation on February 15 , 2020, and meet the other program requirements, you may be eligible for a PPP Loan. 
 
If you are a sole proprietor or self-employed, you may include owner compensation replacement in addition to qualifying payroll expenses, if any, in your loan request. Your owner compensation replacement will be calculated based on 2019 net profit (found on Schedule C and Schedule F).  The maximum loan amount you may request will depend on your qualifying payroll expenses and net profit for 2019. More information on the rule for Sole Proprietors can be found here.
 
Keep in mind borrowers still must certify in good faith that their PPP loan request is necessary. Specifically, before submitting a PPP application, all borrowers should review carefully the required certification that “[c]urrent economic uncertainty makes this loan request necessary to support the ongoing operations of the Applicant.” Borrowers must make this certification in good faith, taking into account their current business activity and their ability to access other sources of liquidity sufficient to support their ongoing operations in a manner that is not significantly detrimental to the business. 

If you have additional questions on this program, please contact your loan officer.
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