Paycheck Protection Program Update

 

The Senate passed the Paycheck Protection Program
and Health Care Enhancement Act.
The House will vote today, Thursday, April 23.
President Donald Trump announced he would sign the bill into law. 

Need a Paycheck Protection Program
or Economic Injury Disaster Loan?
 

Farmers and ranchers should continue consulting with their LENDER, accountant, tax preparer and/or financial advisor about the Paycheck Protection Program and Economic Injury Disaster Loan application for their particular situation because this additional funding will be available on a first-come-first-serve basis and will go quickly.

Message from CEO of Farm Bureau Bank
State Farm Bureau Presidents,
 
The Senate has passed an additional $310 billion for the Paycheck Protection Program for Small Business Loans and it will hopefully pass in the House tomorrow. Many Members are challenged with accessing these funds due to huge backlogs at large national banks and the lack of participation by many Farm Credit banks and small community banks. The demand is enormous, and we expect this round of funding to run out in a just a few short days. 
 
We encourage members to act now and apply if they want access to the program.
 
We are here to help. Farm Bureau Bank continues to process applications so that we can quickly submit the information to the SBA as soon as the system is reopened for application submission, which may be as early as Friday. We have the capacity and expertise to help your members as we have already worked with members in 26 states. The details of the program can also be found on our website, www.farmbureaubank.com
 
Thank you,
William A. Hileman
President and Chief Executive Officer

 

RESOURCES

USDA has published a FAQ website pertaining to a multitude of COVID19 related concerns for farmers and ranchers including a section on PPP. The USDA website is:  https://www.usda.gov/coronavirus.

BACKGROUND

This bill expands farmer and rancher eligibility for the Small Business Administration (SBA) Economic Injury Disaster Loan (EIDL) program, provides additional funding for the Paycheck Protection Program (PPP) and includes necessary funding for hospitals and rural health clinics.

The bill includes the following:

  • Economic Injury Disaster Loans: Extends eligibility to agricultural enterprises, as defined by section 18(b) of the Small Business Act (15 U.S.C. 647(b)) and have 500 or fewer employees to participate in the EIDL.
    • The definition mentioned above is: (b) As used in this Act, the term ‘‘agricultural enterprises’’ means those small business concerns engaged in the production of food and fiber, ranching, and raising of livestock, aquaculture, and all other farming and agricultural-related industries.
    • Provides $60 billion for the EIDL program.
  • Paycheck Protection Program: Provides $320 billion for the PPP. 
  • Small Lender Set-Aside: The bill creates a $60 billion set-aside for Insured Depository Institutions, Credit Unions, and Community Financial Institutions for the PPP. However, the set-aside does not include the Farm Credit System.