By BRENT MARTIN
St. Joseph Post
An economic relief program approved by Congress that has been popular with small business owners also can be used by farmers.
Congress has extended the deadline to apply for the Paycheck Protection Program to the end of May.
“It’s important for people to know that despite the name of it, you do not have to have employees in order to apply and farmers can apply,” according to Regional Director Rebecca Lobina with the Northwest Missouri State University Small Business Development Center during an appearance on the KFEQ Hotline.
The Paycheck Protection Program, known as PPP, has been one of the most popular of the programs initiated by Congress in response to the recession triggered by the coronavirus pandemic. Congress renewed PPP in the latest coronavirus relief and economic stimulus package it approved, extending the program to the end of May.
Lobina says while small business owners have accessed the program, farmers have been more hesitant to tap it.
Lobina recalls talking to a farmer about using the program.
“They were worried that they couldn’t because of some other concerns that they had,” Lobina says. “They were worried about, like, what if our credit is not good. It doesn’t matter. With the PPP, it doesn’t matter.”
Lobina points out PPP is based on gross receipts, not net. She says farmers should use the Schedule F filed with their 2019 income taxes, Line 9 for their gross income.
“So, it does not matter if you had employees. It does not matter how well or bad you did in 2020,” Lobina says. “All that matters is that there is a number on Line 9 that says you are operating, essentially, in 2019 and that’s it.”
Lobina says too many farmers believe they do not qualify for federal COVID-19 economic assistance. She says they qualify, even if they do not have employees.