Lawmakers agree to extend PPP loan deadline, seek to change partnership rules
“Unfortunately, some farm and ranch partnerships, many of which are small family businesses, were excluded from changes to the SBA’s paycheck protection program in December,” Marshall said. “Our legislation would allow farmers categorized as partnerships to use gross income rather than net income when applying for COVID relief. When it comes to PPP, we need to make sure that no farmer or rancher is left behind.
Hickenlooper added: “Family farmers and ranchers have had limited ability to access the paycheck protection program due to legislative technicality. This bill corrects this oversight so that our farming and farming communities herders are getting the help they need to get through the pandemic. “
Businesses can apply for PPP loans if they have 500 or fewer employees. The first drawdown of a PPP loan can be up to $ 10 million, although the overall average loan is currently around $ 63,000.
The big part of the PPP loan is that it is forgivable. The SBA has already approved the cancellation of about 2.1 million of the 5.2 million loans issued so far. About $ 186.1 billion in loans were canceled.
PPP loans are forgivable as long as 60% or more of the proceeds are spent on approved expenses, which includes self-employment compensation for sole proprietorships and sole proprietorship (LLCs) that file taxes on income on the basis of an annex F.
Together, “agriculture, forestry, fishing and hunting” have received $ 7.1 billion out of 363,100 loans since the start of 2021, or about 4% of the volume of PPP loans.
The agriculture, forestry, fishing and hunting sectors saw loan volumes jump from 2020 when they represented only 149,435 loans. But, last year, this smaller pool of loan recipients received larger loans, accounting for $ 8.14 billion in loans in 2020.
The SBA also announced that it had increased the maximum amount of the Economic Disaster Loan (EIDL) from $ 150,000 to $ 500,000. SBA administrator Isabella Casillas Guzman, recently confirmed by the Senate, said the agency had received numerous calls to remove the $ 150,000 cap.
EIDL is not a forgivable loan like PPP, but it offers a 30-year business loan at an interest rate of 3.75%, and the loans can be applied for working capital or normal commercial costs. SBA will also defer the first payment on the loan issued in 2021 for at least 18 months after the date of the note.
For more information on SBA loans, see https: //www.sba.gov / ….
Chris Clayton can be reached at [email protected]
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