The PPP is part of the Coronavirus Aid, Relief and Economic Security (CARES) Act, which initially authorized up to $349 billion in loans to small businesses nationwide, providing a direct incentive to keep workers on the payroll and meet other critical expense needs. First-round funds were exhausted by April 16, but the Senate on Tuesday approved $500 billion in additional funds, and the House is expected to pass the measure Thursday or Friday.
Though it’s uncertain when funds will be available, Farm Credit Mid-America is encouraging customers to complete applications now so that when the money is available, they can be submitted to the Small Business Administration for approval.
“The past few weeks have been a time of unprecedented change and challenge for our customers, creating new, unforeseen obstacles for them, their families and communities,” said Bill Johnson, president and CEO of Farm Credit Mid-America. “These funds will help farmers pay employees cover certain expenses during the COVID-19 crisis.”
Funds for this program come in the form of loans from approved lenders with SBA guarantees for 100% of the principal amount of the loan. Certain amounts of these loans may be eligible for forgiveness in accordance with the rules of the PPP. Borrowers are responsible for understanding their eligibility to participate in the program and all of the PPP requirements associated with these loans, their use, and any loan forgiveness.
Farm Credit Mid-America is accepting applications only from persons and entities that are currently customers of Farm Credit Mid-America, through online applications.