Crops Sector Received 65% of PPP Loans for Agriculture in 2020

(NAFB) – Information up So far by USDA’s Financial Evaluation Service Wednesday reveals 65 % of Paycheck Safety Program 2020 agriculture funds went crop farms, with the latter for livestock.

Final yr, farmers and ranchers might use forgivable mortgages from This method To assist primarytain staff on payroll and offset A pair of of their working prices. The utmost PPP mortgage quantity was 2.5 occasions the month-to-month common revenue plus payroll and eligible overhead funds, Similar to a Outcome of the employer’s share of insurance coverage costs and unemployment taxes. If used on eligible funds Contained in the primary 24 weeks of cost, PPP mortgages have been absolutely forgiven.

Particular person Small Enterprise Administration mortgage knowledge indicated That almost 121,000 farm operations utilized for An complete of $6.0 billion in PPP mortgages in 2020. That accounted for 17 % of presumed-eligible farm operations. Out of The complete PPP mortgages paid to farm operations in 2020, $3.9 billion went to crop operations, and the reprimarying $2.1 billion went to livestock operations.