More than $300 billion has been added to the Paycheck Protection Program (PPP), after the initial $349 billion in funding was depleted in quick fashion earlier this month.

In a nutshell, PPP is designed to help small businesses keep their employees paid through the coronavirus crisis. These loans are open to many businesses under 500 employees, including nonprofits, the self-employed, startups and cooperatives.

Before the PPP, most farmers and ranchers had never worked with the Small Business Administration. Those in agriculture were most often referred to USDA’s Farm Service Agency. 

When the program was finalized as part of the CARES Act, agriculture enterprises that meet the employment criteria, whose principal place of residence is in the United States became eligible, regardless of revenue levels.

“The results of our Farm, Food and Agribusiness COVID-19 Impact Survey made it very clear that many of our members were experiencing cash flow issues due to this crisis, so we made sure lawmakers knew the importance of reopening the PPP program,” said Jack Irvin, Ohio Farm Bureau’s senior director of state and national policy. “We encourage our members to look at this option, as well as the other programs included in the CARES Act as they seek assistance to help get them through these very difficult times.”

The PPP provides eligible businesses loans up to $10 million to cover 2.5 times the average monthly payroll costs, measured over the 12 months preceding the loan origination date, plus an additional 25% for nonpayroll costs. Payroll costs include salaries, commissions and tips; employee benefits (including health insurance premiums and retirement benefits); state and local taxes; and compensation to sole proprietors or independent contractors.

One of the real highlights of the PPP is that the portion of the loan that covers eligible expenses within an eight-week period from Feb. 15, 2020 – June 30, 2020, is forgivable, as long as the company maintains staff and payroll. Any loan proceeds in excess of this amount are subject to repayment at a rate of 1%. The maximum duration of the PPP loans is two years.

Funds from this program will be allocated to small businesses on a first-come, first-served basis. The sample application can help potential borrowers prepare for the lender meeting.

Farmers can apply for the PPP through any existing SBA 7(a) lenders, federally insured credit union, Farm Credit System institution or through any federally insured depository institution that is participating.

If Ohio Farm Bureau members are unable to be served by their local bank, Farm Bureau Bank is accepting applications from not only their existing customers, but from all Farm Bureau members as well. They have already assisted members in 26 states and have the capacity and expertise to help members in Ohio as well.

Online extras

Other current eligible lenders can be found by searching the SBA website.

Find answers to frequently asked questions about PPP as it pertains to agriculture.

The U.S. Treasury Department and the Small Business Administration (SBA) released new guidance for calculating the maximum PPP loan, which includes guidance for farmers who file an IRS Schedule F. The updated guidance can be viewed here.

The issue of property taxation remains as one of the biggest challenges our members face today. Ensuring agricultural property is valued for its agricultural potential and not development is critical to the continued success of Ohio agriculture.
Matt Aultman's avatar
Matt Aultman

Darke County Farm Bureau

Giving farmers a voice
The plan we are on is great. It’s comparable to my previous job's plan, and we are a sole proprietor.
Kevin Holy's avatar
Kevin Holy

Geauga County Farm Bureau

Ohio Farm Bureau Health Benefits Plan
I could not have done it without the resources I have found through Farm Bureau.
Gretchan Francis's avatar
Gretchan Francis

Trumbull County Farm Bureau

Bringing the farm back to life
We really appreciate what Farm Bureau has done to get people interested in this line of work and workforce development and getting people interested in this industry.
Jody Brown Boyd's avatar
Jody Brown Boyd

Brown's Family Farm Market

Finding farm labor
We work terrifically with the Ashtabula County Farm Bureau, hosting at least one to two outreach town hall events every year to educate new farmers and existing farmers on traditional CAUV and woodlands.
David Thomas's avatar
David Thomas

Ashtabula County Auditor

CAUV: Past, present and future
Because we are younger farmers just starting out, Farm Bureau has a lot of good opportunities and resources to help us grow in the future.
Hannah Kiser's avatar
Hannah Kiser

Sandusky County Farm Bureau

Farm Bureau involvement
Through the Select Partner program, we became educated in farm insurance and weren't just selling policies. It became more and more clear why farmers need an advocate like Ohio Farm Bureau.
Chad Ruhl's avatar
Chad Ruhl

Farm manager, CSI Insurance

Select Partner Program
So many of the issues that OFBF and its members are advocating for are important to all Ohioans. I look at OFBF as an agricultural watchdog advocating for farmers and rural communities across Ohio.
Mary Smallsreed's avatar
Mary Smallsreed

Trumbull County Farm Bureau

Advocacy
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