Lawmakers are seeking clarified terms to ensure more farmers and ranchers are eligible for loans through the Paycheck Protection Program (PPP). The request was in a letter to the Treasury Department and Small Business Administration.
Led by Democratic Representative Ron Kind and Democratic Senator Tammy Baldwin, along with Republican Senator John Thune of South Dakota, the lawmakers say many farmers were falling through the cracks when it was first created last year.
Kind introduced legislation over the summer to increase the number of farmers eligible to receive a loan by allowing them to use gross income to calculate their loan award. The legislation was passed as part of the recent COVID-19 relief package. However, many farmers and ranchers are organized as partnerships or limited liability companies, which are taxed differently than other farm and ranch entities. These farmers have been unable to apply for loans under the new calculation because of the SBA’s interpretation of eligibility for partnerships or limited liability companies.
(From the National Association of Farm Broadcasters)