The Payroll Protection Program May Surprise You
By now, I hope that all producers in Stokes County are aware of the Coronavirus Food Assistance Program (CFAP) and the impact it has on livestock producers. Most will have also heard of the Payroll Protection Program (PPP); however, many are unaware that you are eligible. If you file a schedule F with your taxes, you ARE eligible for the PPP, even if you are your only employee (i.e. self-employed).
Livestock and Forage Crop Agent Kendra Phipps is working with Elizabeth Hash, contact for the Payroll Protection Program at Skyline National Bank, to help eligible producers learn more about this program. Elizabeth provided the following information on the PPP:
- The Paycheck Protection Program allows entities to apply for low-interest private loans to pay for their payroll and certain other costs. The amount of a PPP loan is approximately equal to 2.5 times the applicant’s average monthly payroll costs. For farmers, their loan amount is calculated by taking their Gross Income (Line 9 of their Schedule F), dividing by 12, then multiplying by 2.5. The loan proceeds may be used to cover payroll costs, rent, interest, and utilities. The loan will be forgiven if the business keeps its employee counts and employee wages stable. It is important to remember that although you may not have W-2 receiving employees, you are considered an employee on your operation.
For more information on how to apply for the payroll protection program, please contact Kendra at 336-593-8179 or Elizabeth Hash at 276-773-2811. You can also visit Skyline National Bank’s website, or your local bank.