Federal Officials Amend PPP Loan Options for Farmers

The Paycheck Protection Program (PPP) provided loans to farmers who suffered adverse economic effects from the COVID-19 pandemic. Initial payments to farmers were based on net income, but the program is changing for 2021 in a few key ways. Farmers will be able to apply based on gross income, eliminating what one ag law and policy expert said hindered many farmers from applying in 2020. The PPP loans are forgivable if 60% of the proceeds are used for approved expenses, including as compensation for a small number of business structures, including self-employment, based on Schedule F income taxes filed. And, PPP won’t be taxed as income if it’s used for compensation. The updated PPP has multiple funding options, making it important to get the details on what will be the right strategy if you’re considering applying for the loans. Find out those details and more here.