[Ctyfc] Payroll Protection Program & FEMA info

[Evan Driscoll]

Hey Folks,

1) A friend just notified me that FEMA is currently accepting applications
for disaster relief funds, for which both individuals and businesses can
apply:
https://www.disasterassistance.gov/ . I don't know any details on
eligibility or what the resources here actually are.

2) Also, I mentioned this in another thread, but thought I'd break this out
here in case folks missed it.  I am not a CPA or a banker but have some
familiarity with the program as an applicant that I can share.

If you have employees on payroll at your farm, and you're going to have
issues with staffing in the coming months, this might be a good option for
you. In essence, the Payroll Protection Program (PPP) can cover your
payroll costs for 2.5 months in the form of a forgivable loan. This means
that when you receive the funds it will be a "loan", but once you provide
documentation showing that you used the funds for payroll, the "loan" is
forgiven and does not need to be paid back. In this sense, it's more like a
grant. If you're a sole proprietor, these funds may be able to cover owner
payments as well (I'm not 100% on that, ask your bank)

PPP is a program of the Small Business Administration (SBA) and is a
program in response to COVID. Applications and enrollment are currently
open, and historically it has been first come first serve. With a new round
of stimulus coming through, there are indications that these funds will be
further replenished.

The application is easier than most other applications of this nature. I
applied for and received one last year. Call your bank and ask them what
they need to apply on your behalf, and they should be able to help you out.

Overview of the program is here
<https://www.sba.gov/funding-programs/loans/coronavirus-relief-options/paycheck-protection-program>
.

Application is here
<https://www.sba.gov/sites/default/files/2021-02/Borrower%20Application%20--%20Updated%20Round%20One%20%28Revised%202.17.2021%29-508.pdf>
.

FAQ is here
<https://www.sba.gov/sites/default/files/2021-01/Paycheck-Protection-Program-Frequently-Asked-Questions.pdf>
.

You need to have accurate historical financials. If you have basic business
information and books that prove payroll figures over the past year (ie: a
report from a payroll processor works fine, or a tax return if you're a
sole proprietor), that's mostly what you'll need. You take the average
monthly payroll costs for the past year, multiply that monthly figure by
2.5, and put up to that amount on the application.

Again, I'm not a CPA or banker, so take this with a grain of salt and talk
to your bank directly to get these details and have questions answered. I'm
here to talk this through with you if you need a sounding board on any of
this.

Thanks,

Evan
(512) 947-7836

-- 
*Big Field Consulting*
Food. Sustainability. Work.
https://bigfieldconsulting.com/
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