Karney: Producers Need To Take Advantage Of Extra Time To Apply for PPP

When approved by Congress, the Paycheck Protection Program was designed to help struggling small businesses keep employees on their payrolls as they recover from coronavirus pandemic. R.J. Karney, Director of Congressional Relations with the American Farm Bureau Federation said this program is incredibly important for farmers nationwide.

“Even as the economy gradually begins to reopen, farmers and ranchers continue to encounter enormous volatility within the markets. The supply chains are rapidly reacting to the impact of the pandemic, and the Paycheck Protection Program is a guaranteed loan program which includes $670 billion for small businesses. This includes agricultural enterprises, to keep their employees on payroll.”

Karney said farmers and ranchers fortunate enough to secure a loan from PPP are benefiting from the program. He added PPP needs to reach a lot more farmers and ranchers to truly impact agriculture.

“According to the SBA data, a meager 1.5% of approved funding has gone to the agriculture, forestry, fishing, and hunting sectors combined. AFBF is working with Congress and the administration on changes that will allow more farmers and ranchers to participate in the program, especially since $130 billion remains in the program.”

The deadline to apply for paycheck protection was June 30^th, but Congress extended the application window into early August. Karney said producers interested in the program need to take advantage of the extra time to get the paperwork done.

“Congress recently extended the application period for the PPP until August 8th of 2020, and the bill still needs to get the president’s signature. However, this extension allows farmers and ranchers additional time to consult with their accountants, tax preparers, and financial advisors about the PPP application, to ensure all the proper documentation has been completed and reviewed before meeting with their lenders.”

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