A rule change is allowing rural America a larger share of the Paycheck Protection Program.
The pandemic loans have been a lifeline for farmers and small businesses, but many were being left behind. In June, some lawmakers introduced a bill to expand access to certain farmers and ranchers who were previously ineligible. That change was included in the COVID-19 package that Congress passed in December.
Congressman Ron Kind, a Wisconsin Democrat, says that the change is not complete just yet.
“The Small Business Administration has decided to limit the qualification to just sole proprietorship. That does exclude partnerships and LLCs, and that wasn’t Congress’s intent,” Kind states. “As long as your family farm operates with up to $100,000 dollars worth of gross profits using Schedule F as your tax form, you should be qualifying for the P3 program. So, we’re working with SBA now to clarify that.”
Small businesses in Nebraska, Oklahoma, and other rural states have been the most successful at getting relief in the $285 billion dollar package.
Related:
The future of PPP and its effects on farmers
Ag CPA on increasing your PPP credit
PPP loans are one reason for the growth of farmer debt
