A pair of U.S. Senators want the federal government to issue guidance excluding Coronavirus Food Assistance Program payments from farmers’ and ranchers’ 2020 gross receipts for purposes of obtaining a second draw loan through the Paycheck Protection Program.
Senators John Thune, a South Dakota Republican, and Tammy Baldwin, a Wisconsin Democrat, made the request in a letter to the Department of Treasury and the U.S. Small Business Administration.
The Senators refer to the interim final rule on the PPP loans released in early January.
In outlining how businesses must demonstrate a 25 percent reduction in gross receipts in 2020 compared to 2019, the interim final rules state that forgiven first draw PPP loans do not count toward gross receipts.
However, the Senators say the rules are silent on whether or not Coronavirus Food Assistance Program payments count towards farmers’ and ranchers’ 2020 gross receipts for purposes of demonstrating a 25 percent reduction in receipts in 2020 compared to 2019.
(Story Courtesy of the NAFB News Service)