[Listen] Kent Thiesse Payment Protection Program One and Two
The Payment Protection Program (PPP) which is administrated by the Small Business Administration (SBA) was part of one of the COVID-19 aid bills passed by Congress and signed into law by President Trump. Many farmers did not qualify because it was based on farm profit. Because of low prices and yields many farmers did not make any money. Then the rules were changed and farmers qualified for the maximum amount if they grossed more than $100,000.
Then, for the PPP round two many farmers qualified if their income was down more than 25 percent in any quarter in 2020 compared to the same quarter in 2019. The catch is that the PPP loan round one must be forgiven before you can apply for round two. Plus the PPP round one forgivable loan must be in place about 60 days before it can be forgiven. That first loan must be officially forgiven before you can apply for the second round if you qualify.
Fortunately all ag lenders are aware of the PPP and know how it works so they can help farmers with the procedures. Click on the link and listen to ag analyst Kent Thiesse talk about PPP round one and two.