Marshall also had signed on to a similar bill introduced in March along with Sens. John Hickenlooper, D-Colo., and Joni Ernst, R-Iowa.
The House also has had multiple versions of the same bill introduced as well. Reps. Abigail Spanberger, D-Va., Cindy Axne, D-Iowa, and Ashley Hinson R-Iowa, introduced one version of the bill. House Small Business Committee Chair Nydia Velazquez, D-NY, introduced a similar bill.
The Paycheck Protection Program is on its third batch of funds and loan eligibility. The deadline for applications is May 31. PPP loans are forgivable as long as 60% or more of the proceeds are spent on approved expenses, which includes self-employment compensation for sole proprietorships and single-owner limited liability corporations (LLCs) that file income taxes based on a Schedule F.
SBA had issued guidance in March stating how businesses can calculate maximum loan amounts. In doing so, SBA stuck with its position that only self-employed farmers and ranchers who file a 1040 Schedule F with their tax returns can use gross income to determine the loan amount. A farmer or rancher who is a single member of an LLC or a qualified joint venture, as defined by the IRS, and files a Schedule F can use gross income to determine their loan amount. Multiple farmers in a partnership, though, must use net income from the partnership on the application, and they have a longer list of reporting details to provide on their application.
In February, SBA boosted funding eligibility for sole proprietors such as farmers with a change in the loan formula. Businesses, including those in agriculture, can apply for PPP loans if they have 500 or fewer employees. The first draw of a PPP loan can go as high as $10 million, though the overall average loan size is $68,000. https://www.dtnpf.com/…
More information on SBA loans can be found at https://www.sba.gov/…
Chris Clayton can be reached at Chris.Clayton@dtn.com
Follow him on Twitter @ChrisClaytonDTN
(c) Copyright 2021 DTN, LLC. All rights reserved.