Farmers and sole proprietors are required to obtain the full forgiving loan amount under the federal payroll protection program as part of a measure supported by Republican Republican Representative Elise Stefanik.
The move addresses a discrepancy in a program that provided loans to businesses that were struggling with sudden revenue loss due to the COVID-19 pandemic last year. These are changes made by Congress and the Small Business Administration that allowed farmers, ranches, and small businesses to recalculate their loans based on gross income rather than net income.
But the move had limitations on how far back these businesses could recalculate those loans, and the measure, sponsored by Stephanick and Iowa-based Democratic Representative Ashley Hinson, is meant to provide a fix to ensure that the full loan amount is forgiven for the companies in question.
“The Salary Protection Program and other SBA programs have become a lifeline for our farms and businesses as they overcame the financial problems caused by the COVID-19 pandemic,” Stefanik said. “This law fixes the calculations for all eligible farmers, allowing them retroactively to receive the full amount of funds to which they are entitled, providing much-needed stability for families across the Northern Country.”