Quarles, Farm Groups Highlight New Farmer-Friendly Update to the Paycheck Protection ProgramPosted on Jan 26, 2021
FRANKFORT (Jan. 25, 2021) – Agriculture Commissioner Dr. Ryan Quarles and Kentucky farm groups are highlighting changes to the Paycheck Protection Program (PPP) benefiting Kentucky agricultural producers. PPP provides forgivable loans to small businesses to pay employees to keep them on the payroll. The Small Business Administration (SBA) opened an application round with new rules on Jan. 15 after Congress passed a COVID-19 relief package in December.
According to an analysis by the American Farm Bureau, the package:
- Allocated an additional $284 billion in funding for a second round of PPP loans;
- Clarified that allowable expenses that had been paid for with forgiven PPP loans may be counted as a business deduction for income tax purposes without limitation;
- Cut in half the qualifying reduction in gross revenue from 50 percent to 25 percent;
- Expanded eligible expenses to include personal protective equipment for workers and adaptive costs in addition to previous eligible expenses of payroll, mortgage interest, rent, and utilities; and
- Changed the metrics for loans from net farm income to gross income for farmers who file taxes as sole proprietors.
“The changes made to the already successful Paycheck Protection Program will enable more Kentucky farm families to participate in this critical COVID-19 relief program,” Commissioner Quarles said. “It’s much better for both workers and employers to keep people on the payroll than throwing our most vulnerable people into our state’s disastrous unemployment system. I hope every Kentucky farm and agribusiness will take a serious look at the changes to this program and take action to keep employees on the payroll.”
“The latest COVID stimulus package approved by Congress in December updates the Paycheck Protection Program loan program to provide greater access for farmers to secure first and/or second round loans,” said Mark Haney, President of Kentucky Farm Bureau. “It is critical that we do all we can to support our agriculture industry and additional access to PPP loans will provide added certainty during a period that has seen so much uncertainty.”
“The new COVID-19 relief package’s PPP loans recognizes the value of Kentucky’s agricultural producers,” said Tod Griffin, Executive Director of the Agribusiness Association of Kentucky. “Our agribusiness partners stand ready to help them provide for Kentucky’s families.”
The Paycheck Protection Program is administered by the U.S. Small Business Administration and approved lenders. To locate an eligible PPP lender, visit sba.gov/paycheckprotection/find.