Paycheck Protection Program Information
The Paycheck Protection Program (“PPP”) authorizes up to $349 billion in forgivable loans to small businesses to pay their employees during the COVID-19 crisis. All loan terms will be the same for everyone.
Agricultural producers are eligible to participate in this program and should reach out to their bankers and/or agricultural lenders to apply immediately.
The loan amounts will be forgiven as long as:
- The loan proceeds are used to cover payroll costs, and most mortgage interest, rent, and utility costs over the 8 week period after the loan is made; and
- Employee and compensation levels are maintained.
Payroll costs are capped at $100,000 on an annualized basis for each employee. Due to the likely high number of applications, it is anticipated that not more than 25% of the forgiven amount may be applied to the non-payroll costs.
Loan payments will be deferred for 6 months.