Farmers can apply for second-draw loans even if their previous loan didn't qualify for forgiveness.
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.
Farmers are eligible for PPP loans through the Small Business Administration (SBA), if they have fewer than 500 employees. Borrowers may be eligible for PPP Loan Forgiveness if certain conditions are met. The PPP loans are facilitated through participating lending institutions with established SBA relationships.
A second-draw borrower can be a business concern, independent contractor, eligible self-employed individual, sole proprietor, nonprofit organization eligible for a first-draw PPP Loan, veterans organization, tribal business concern, housing cooperative, small agricultural cooperative, eligible 501(c)(6) organization or ...
According to ARMS, 72 percent of all farm businesses (operations with gross cash farm income of more than $350,000 or smaller where farming is reported as the operator's primary occupation) had either positive net income or paid labor—and, therefore, would meet the two most important eligibility requirements to apply ...
Self-employed farmers can apply for PPP loan funds based on their 2020 gross income. ... The Paycheck Protection Program (PPP) was created in the CARES Act in 2020 to provide forgivable loans to small businesses, including farms. Much has been made of the provisions that focus on payroll expenses.
WASHINGTON, Nov. 1, 2021 – The U.S. Department of Agriculture (USDA) is in the process of issuing $1.8 billion in payments to agricultural producers who enrolled in the Agriculture Risk Coverage (ARC) and Price Loss Coverage (PLC) programs for the 2020 crop year. ... 18, 2021 and runs through March 15, 2022.
When can you apply for the Second Draw? Eight weeks must pass from the time you get the First Draw PPP until the Second Draw PPP is disbursed to you. You can apply for the Second Draw before the 8 weeks has passed. However, if you do so, you want to make sure you don't accept the Second Draw money until after 8 weeks.
Borrowers can apply for a Second Draw PPP Loan until March 31, 2021, through any existing SBA 7(a) lender or through any federally insured depository institution, federally insured credit union, eligible non-bank lender, or Farm Credit System institution that is participating in PPP.
What's updated for the second round of PPP? ... This means, like the first PPP loan, the second round of PPP loans will also be fully forgivable if you follow the forgiveness guidelines. At least 60% of the loan must be spent on payroll and the rest spent on other eligible expenses.
SBA PPP guidance notes that, in addition to having 500 or fewer employees, agricultural producers, farmers, and ranchers are eligible for the PPP if the business fits within its revenue-based industry size standard, which, for most agricultural enterprises, is average annual receipts of no more than $1 million.
If your net profit for 2019 and 2020 was negative, meaning you took a loss, you are only eligible for a PPP loan if you are currently running payroll.
You can't apply for a first-draw PPP loan AND a second-draw PPP loan at the same time, but if you act quickly, you can get your first draw funding and spend it in a legal fashion (i.e., on payroll expenses—which in the case of independent contractors, eligible self-employed individuals, or sole proprietors means paying ...
Applications are open now! You can only apply if you will have used up your first PPP loan by the time your second PPP loan funds are disbursed.
Applying for a First and Second Draw in the Same Round
If you received your PPP First Draw in 2021, you may be eligible to apply for a Second Draw before the program expires on May 31.
Whether a PPP loan fraud case involves thousands, hundreds of thousands, or millions, defendants can receive prison sentences in these cases. If there is evidence of fraud, people can go to jail for a $20,000 PPP loan, just like someone whose PPP loan was $100,000 or $1 million.
COVERED PERIOD
Now they can choose any length between eight and 24 weeks. Note that a borrower's first-draw and second-draw covered period cannot overlap.
The loans for the second round of PPP forgiveness are up to $2 million (as opposed to the maximum of $10 million in the first round), and during the forgiveness process, you may choose a covered period between eight to 24 weeks.
All Second Draw PPP Loans will have the same terms regardless of lender or borrower.
The second round is forgivable if used for the appropriate covered expenses. ... Other covered expenses include operational expenses, supplier costs, worker protection expenses, utility costs, rent or mortgage interest payments, and property damage. The funds are forgivable just like the first round of PPP loans.
Learn more. PPP borrowers are eligible for up to 2.5x monthly payroll costs for their initial PPP loan, as well as any second draw. If your business falls under NAICS code 72 (Accommodation and Food Services), you may qualify for up to 3.5x monthly payroll costs for a second draw. All second draws are limited to $2M.
The all-India scene
The average annual income (in current prices) per farm household from all sources at the all-India level increased from ₹25,380 in 2002-03 to ₹77,112 in 2012-13 and further to ₹1,22,616 in 2018-19.
Congress approved about $35 billion in emergency aid to farmers, which came on top of roughly $10 billion in traditional farm subsidies that were already in place. ... The $46 billion in direct government payments to farmers in 2020 broke the previous annual record by about $10 billion, even after accounting for inflation.
USDA Projects Higher Farm Income in 2021
In its September 2021 forecast, the U.S. Department of Agriculture (USDA) Economic Research Service (ERS) anticipates both indicators will be higher for 2021 than 2020 (Table 1), and 2021 will be above historic long-run averages (Figure 1).