SBA / Treasury FAQ – 34. Are agricultural producers, farmers, and ranchers eligible for PPP loans?

Compliance > CARES Act
Q:  Are agricultural producers, farmers, and ranchers eligible for PPP loans?
 
A:   Yes.Agricultural producers, farmers, and ranchers are eligible for First Draw PPP loans if: (i) the business has 500 or fewer employees, or (ii) the business fits within the applicable revenue-based sized standard under 13 C.F.R. 121.201. Additionally, agricultural producers, farmers, and ranchers can qualify for First Draw PPP Loans as a small business concern if their business meets SBA’s “alternative size standard.” The “alternative size standard” is currently: (1) maximum net worth of the business is not more than $15 million, and (2) the average net income after Federal income taxes (excluding any carry-over losses) of the business for the two full fiscal years before the date of the application is not more than $5 million.Agricultural producers, farmers and ranchers are eligible for a Second Draw PPP Loan if they have 300 or fewer employees and meet the other eligibility criteria in subsection (c) of the interim final rule for Second Draw PPP Loans. For all of these criteria, the applicant must include its affiliates in its calculations. See FAQ #5.
 
 

This Q&A was based on information contained in the Treasury Department’s March 12, 2021, version of “Paycheck Protection Program Loans, Frequently Asked Questions,” which is updated from time to time.  This CARES Act / SBA / PPP related issuance may be found here:  https://home.treasury.gov/system/files/136/Paycheck-Protection-Program-Frequently-Asked-Questions.pdf

 

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