Farms that obtained a Paycheck Protection Program (PPP) loan through an independent lender – and were administered by the Small Business Administration (SBA) – are encouraged to review the application steps for PPP loan forgiveness.
The CARES Act allowed SBA, through the PPP, to provide potentially forgivable loans to small businesses, including farms.
PPP borrowers may be eligible for loan forgiveness if the funds were used for eligible payroll costs, payments on business mortgage interest payments, rent or utilities during either the eight- or 24-week period after disbursement. A borrower can apply for forgiveness once it has used all loan proceeds for which the borrower is requesting forgiveness.
Borrowers can apply for forgiveness any time up to the maturity date of the loan. If borrowers do not apply for forgiveness within 10 months after the last day of the covered period, then PPP loan payments are no longer deferred and borrowers will begin making loan payments to their PPP lender.
Additional information on how to apply for forgiveness can be found here.