The National Corn Growers Association (NCGA), along with K·Coe Isom, Wednesday led a coalition of 35 agriculture organizations urging Congress to work with the Small Business Administration (SBA) to ensure that farming partnerships and limited liability corporations (LLCs) are able to participate in the Paycheck Protection Program (PPP).
In a letter to the leaders of the Senate Committee on Small Business and Entrepreneurship, and the House Committee on Small Business, the organizations said it is critical for agricultural producers, many of whom have structured their operations as partnerships and LLCs, to receive PPP funding regardless of the tax structure.
“As you know, farming and ranching are capital-intensive operations often operating at a loss and with owners who frequently do not work for wages,” the organizations wrote.
Section 313 of The Economic Aid Act made changes to the initial eligibility requirements for PPP, recognizing the special circumstances of those working in agriculture and helping many farmers and ranchers participate in the program. Unfortunately, the SBA has since interpreted this language to exclude farm and ranch operations structured as partnerships and LLCs.
“We believe this interpretation is in error and is preventing many farm and ranch families from participating in the PPP,” the organizations wrote. “We ask that you clarify to SBA that Congress intended to include farm partnerships and LLCs in Section 313.”
Click here for a PDF of the letter.