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Legislation would allow farmers to access CARES loans

June 12, 2020
In The News

On Thursday, Rep. Glenn Thompson, R-Pa., joined three other congressmen to introduce bipartisan legislation to expand access to Paycheck Protection Program (PPP) loans for farmers and ranchers.

The PPP was created by Congress under the Coronavirus Aid, Relief, and Economic Security (CARES) Act in order to assist small businesses keep employees on payroll and cover other business related expenses, helping them weather the economic damages caused by COVID-19.

Currently, many farmers are being deemed ineligible for PPP loans due to reporting negative net incomes to the IRS as a result of low commodity prices and wet planting seasons in recent years. This legislative fix would allow producers filing a Schedule F to use their gross 2019 income (up to $100,000) when calculating their PPP loan rather than net income, expanding eligibility to more farmers and ranchers.

“Family farms and essential farm workers across the country have been working around the clock through the COVID-19 pandemic to ensure the continuity of the food supply chain, yet many have been determined ineligible to participate in the Paycheck Protection Program. We owe these folks a great deal of gratitude and the Paycheck Protection for Producers Act will allow these producers to be on even footing with every other American small business,” said Thompson.Print

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