UPDATES for COVID-19 Assistance Programs for Farmers and Ranchers

Small Business Administration Loan Programs
Late last week (4/24/20), Congress passed legislation to provide another round of funding for a pair of Small Business Administration (SBA) programs including the Paycheck Protection Program (PPP) as well as the Economic Injury Disaster Loan (EIDL) program. The legislation included an additional $320 billion for PPP as well as an expansion of the EIDL program to include participation by agricultural enterprises. 

Here are updates to help members navigate these programs. Please note the SBA resumed accepting PPP applications at 10:30 a.m. (ET) today, April 27, 2020. 

  • NEFB Guide to PPP – HERE
  • PPP Maximum Loan Calculation – HERE
  • NEFB Guide to EIDL – HERE  

Please note the SBA has clarified a few issues farmers and ranchers have been asking about the PPP since the program was originally funded including the following for sole-proprietors: 

Question:
I am a self-employed individual who reports my income on IRS Form 1040 Schedule F. What documentation must I provide in place of Schedule C and how should my maximum loan amount be determined (up to $10 million)?

Answer:  
Self-employed farmers (i.e., those who report their net farm profit on IRS Form 1040 Schedule 1 and Schedule F) should use IRS Form 1040 Schedule F in lieu of Schedule C, and Schedule F line 34 net farm profit should be used to determine their loan amount in place of Schedule C line 31 net profit. The calculation is otherwise the same as for Schedule C filers above. The 2019 IRS Form 1040 Schedule 1 and Schedule F must be included with the loan application. 

USDA Coronavirus Food Assistance Program
USDA continues to roll out details of their Food Assistance Programs which includes aid to farmers. The American Farm Bureau (AFBF) has updated their Market Intel piece to reflect new information. While many details have yet to be released, the piece contains the most up-to-date information that is publicly known at this time. 

  • AFBF “What’s in USDA’s New Coronavirus Food Assistance Program” – HERE 
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