Wisconsin Ag Connection - Baldwin Pushing to Make More Farmers Eligible for PPP Loans

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Baldwin Pushing to Make More Farmers Eligible for PPP Loans
Wisconsin Ag Connection - 02/01/2021

U.S. Senators Tammy Baldwin of Wisconsin and John Thune of South Dakota are urging the U.S. Department of Treasury and the Small Business Administration to make more farmers eligible for the second round of PPP funds.

The lawmakers are specifically asking the agencies to issue guidance excluding Coronavirus Food Assistance Program payments from farmers' 2020 gross receipts for purposes of obtaining a second loan through the Paycheck Protection Program.

In a letter to Treasury Secretary Janet Yellen and Acting Administrator Mike Perriello, they said it was important to recognize the significant market volatility and financial hardships farmers across the country faced because of the coronavirus pandemic.

"The USDA established CFAP, which provided critically needed financial assistance to producers to ensure they were able to continue providing our nation with a safe and abundant food supply," the senators wrote. "Therefore, we respectfully request that you clarify through additional guidance or an FAQ that CFAP payments provided to farmers and ranchers in 2020 do not count toward gross receipts for purposes of demonstrating a 25 percent reduction in revenue in 2020 compared to 2019."

Last year, Baldwin and Thune introduced legislation to make farmers that were closed out of the PPP eligible. That measure was included in the recently passed Economic Aid Act, which increased the ability of small and struggling farmers to access the PPP.

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