Self-employed or sole proprietor farmers are eligible for a PPP loan if they: Were in operation on Feb. 15, 2020. Have self-employment income (gross income).
The maximum PPP loan amount was 2.5 times the monthly average profit plus payroll and eligible overhead expenses (such as the employer's share of insurance payments and unemployment taxes). PPP loans were forgivable if used within 24 weeks after the first disbursement of the loan on eligible expenses.
For example, PPP rules now allow farmers to receive two different PPP loans, what the program calls “first draw PPP loans” and “second draw PPP loans.” In addition, farmers can use gross income, not net profit, as the basis of a loan.
To qualify for a PPP loan, self-employed individuals must meet the following criteria: You were in operation as of February 15, 2020. You are an independent contractor, sole proprietor, or other qualifying business classification with self-employment income. In 2020, you filed a Schedule C or Form 1040.
For sole proprietors or independent contractors with no employees, the maximum possible PPP loan is therefore $20,833, and the entire amount is automatically eligible for forgiveness as owner compensation share.
First Draw PPP Loan If You Have No Employees
(If you are using 2020 to calculate payroll costs and have not yet filed a 2020 return, fill it out and compute the value.) If this amount is over $100,000, reduce it to $100,000. If both your net profit and gross income are zero or less, you are not eligible for a PPP loan.
Agricultural enterprises are only eligible for COVID-19-related EIDL. SBA COVID-19 EIDLs have loan terms of up to 30 years with 3.75% interest for small businesses and 2.75% interest for private nonprofit organizations.
WASHINGTON – U.S. Small Business Administration Administrator Jovita Carranza announced today that agricultural businesses are now eligible for SBA's Economic Injury Disaster Loan (EIDL) and EIDL Advance programs.
Your payroll cost for the PPP will be the earnings that you are taxed on. As an owner of an LLC, this is the full amount of your net profit, not your owner draws.
What are the forgiveness requirements for my PPP loan? In general, if you follow the guidance above on use of your PPP loan, you should be eligible for full forgiveness. When you apply for forgiveness, you must provide us with a copies of your filed 2019 Schedule F and your filed 2020 Schedule F.
EIDL loans cannot be forgiven. However, EIDL loans do have a deferment period. Any EIDL loan approved in 2020, 2021, and 2022 can be deferred up to 30 months from the date of the note. Full or partial payments can be made during this time but are not required.
In regard to H-2A or H-2B workers on payroll, only employees with a principal place of residence in the U.S. count toward eligibility and calculation of the PPP loan amount.
When you applied for your PPP loan, you needed proof of payroll, in this case salary. To do this you'll need your 2019 Form 1040 Schedule C, as well as a 2019 IRS Form 1099-MISC detailing non-employee compensation, invoices, bank statements, or a book of record that proves you are self-employed.
Agricultural enterprises include businesses engaged in the production of food and fiber, ranching, and the raising of livestock, aquaculture as well as all other farming and agricultural related industries (as defined by Section 18(b) of the Small Business Act (15 U.S.C. 647(b)).
Yes, you can. Buying a farm is an expensive investment, and more and more farmers are turning to alternative business finance over traditional bank loans. This is because alternative finance can offer better interest rates and more flexible options for your farming business.
As used in this chapter, the term “agricultural enterprises” means those small business concerns engaged in the production of food and fiber, ranching, and raising of livestock, aquaculture, and all other farming and agricultural-related industries.
You want a second EIDL.
You may apply for only one COVID-19 EIDL. But if your business is located in a declared disaster area and it experienced additional economic injury, you may apply for a separate EIDL as well as a COVID-19 EIDL.
Loan Purposes
make a down payment on a farm. purchase of easements. construct, purchase or improve farm dwellings, service buildings or other facilities and improvements essential to the farm operation. promote soil and water conservation and protection.
Applicant is not an agricultural enterprise (e.g., farm), other than an aquaculture enterprise, agricultural cooperative, or nursery.
It is illegal to make false statements to a financial institution, so if you were to lie on a PPP loan, you could be charged with this federal crime. This act is criminalized under section 1014 and if convicted, you can face quite a hefty fine along with imprisonment for up to 30 years.
PPP Application Deadline Extended to May 2021: The U.S. Senate voted to extend the PPP program until the end of May 2021, giving small businesses more time to apply and the government more time to process requests.
No, 1099 employees should not be included in a small business's payroll calculations for their PPP loans. 1099 employees are considered their own businesses under the PPP.
Wire Fraud: If you used a device, like telephone, internet, etc, to defraud an institution in order to gain funds from a PPP loan – you can be convicted of wire fraud. Penalties for wire fraud can include a prison sentence up to 20 years, and in addition – restitution to anyone impacted.