(WFRV) – There is some financial help on the way for agriculture. But, what programs are best for your operation?
Millaine chats with Aaron Stauffacher, associate director of government affairs for Edge Dairy Farmer Cooperative about what farmers need to be doing now to secure some assistance.
The group sent the follow details to members to outline some of the help available:
Paycheck Protection Program
PPP offers farms and small businesses short-term, low-interest loans to cover payroll costs, mortgage interest, rent and utilities. Loan funds used for those specific items are eligible to be forgiven if employee count and compensation are not reduced. No more than 25 percent of the forgiveness amount may be attributable to non-payroll costs.
Loan terms will be 1 percent interest and mature in two years, with payments being deferred for six months and interest accruing during that time. Amounts forgiven will not be counted as income by the lender.
Individual loan amounts are calculated according to this formula:
Aggregate payroll costs from the last 12 months for employees whose principal place of residence is the United States.
Subtract any compensation paid to an employee who is compensated over $100,000 a year.
Divide aggregate payroll costs from Step 1 by 12 to determine average monthly payroll costs.
Multiply the average payroll costs by 2.5.
You can find additional information on the SBA’s PPP website and by contacting your financial institution to complete your application.
Economic Injury Disaster grants and loans
In addition to allocating more money to the EIDL program, the legislation allows farms and other agricultural enterprises to enroll. This change means farms would be able to apply for low-interest loans and qualify for $10,000 emergency grants.
To be eligible, a business must show economic harm as a result of the crisis. Grants are limited to $1,000 per employee with a maximum of $10,000. Loans to help overcome loss of revenue may be used to pay fixed debts, payroll and other like costs. The maximum loan is $2 million and the loans are subject to certain limitations. You can find out more information and directly apply on this SBA website.