Senator Baldwin Introduces Legislation to Revise Way Producers Calculate Paycheck Protection Program Loan Award Applications
Wednesday, June 10th, 2020 -- 8:54 AM
(Wisconsin Ag Connection) -U.S. Senators Tammy Baldwin of Wisconsin and John Thune from South Dakota introduced legislation that would revise the way producers calculate their Paycheck Protection Program loan award applications.The PPP was established to help struggling businesses during the Coronavirus pandemic by providing forgivable loans to meet payroll and other expenses. But since a lot of farmers don't show a profit on their tax returns, some do not meet financial criteria to qualify for assistance. The measure would allow producers filing a Schedule F on their tax returns to use their 2019 gross income (up to $100,000) when calculating their PPP loan rather than net income since many producers showed a loss on their 2019 taxes due to the wet planting season and low commodity prices.
PPP was developed by Congress in the Coronavirus Aid, Relief, and Economic Security, (or CARES) Act, to help small businesses that have less than 500 employees.
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