The Small Business Administration issues guidance for calculating gross receipts. Farmers can now verify if they qualify for a second PPP loan.
Ag CPA Paul Neiffer speaks with RFD-TV’s own Janet Adkison on how the receipts are calculated and if the PPP will be extended.
“The key is that their gross receipts either for the whole year or on a quarter-by-quarter basis have to be at least 25 percent lower,” Neiffer explains. “So, let’s say in the second quarter of 2020 because of the pandemic their gross receipts were, let’s say, $500,000 dollars, but in the second quarter of 2019 it was $1,000,000 dollars, that’s certainly more than a 25 percent reduction so they would qualify for that second round of PPP loans.”
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Related:
Ag CPA on increasing your PPP credit
Question continue regarding the PPP program for farmers
Changes to PPP will benefit rural America