The Paycheck Protection Act And Agricultural Producers

Perhaps the Small Business Administration and its workers should not have been in charge of implementing the new Paycheck Protection Program (PPP). However, they likely were the only entity that could handle this process on a timely basis, but the issue arises that most of the workers in the SBA are used to dealing with implementing a “small business concern” loan. These loans are what they normally handle on a day-to-day basis and are very familiar to the SBA and its workers and they seem to be interpreting the new PPP using that criteria.

The concern for farmers is that under the “small business concern” definition there is a dollar revenue limit for most farm operations. As an example, soybean farming is the first NAICS industry listed under Agriculture and its revenue limit is $1 million. The $1 million revenue limit also applies to corn, wheat, rice and almost every other farm industry listed including cattle, dairy and hogs.

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