Congressman Jim Hagedorn last week introduced the bipartisan Paycheck Protection Program Flexibility for Farmers and Ranchers Act. The Minnesota Republican says the bill would allow farmers and ranchers categorized as partnerships to utilize gross income when calculating maximum Paycheck Protection Program loan amounts. The CARES Act allowed for farmers and ranchers to apply for PPP loans by utilizing net income in their loan calculations. Unfortunately, Hagedorn says, this prevents many agricultural partnerships from receiving the maximum PPP loan possible. Hagedorn’s legislation provides enhanced flexibility by allowing the use of gross income to calculate the maximum loan amount. The bill also includes a retroactive provision to enable producers, who initially used net income, to recalculate their PPP loans, so long as the loans have not been forgiven. The lawmaker states, “As we approach a return to normalcy and reopening our economy, it is critical that we ensure our farmers and ranchers have access to the resources needed to maintain operations.”
