Food & Agriculture Quarterly June 2020 - Page 9

FOOD & AGRICULTURE QUARTERLY | JUNE 2020 economic uncertainty made the PPP loan necessary to support ongoing operations. SBA guidance has clarified that borrowers, in making this determination, must take into account “their current business activity and their ability to access other sources of liquidity sufficient to support their ongoing operations in a manner that is not significantly detrimental to the business.” The SBA has declared that a borrower whose loan, combined with its affiliates’ loans, is under $2 million will be deemed to have made this certification in good faith. Considerations for Seasonal Employers Significantly to agricultural businesses, the PPP is available to seasonal employers. Any seasonal employer, such as a farmer, who may have been dormant on Feb. 15, 2020 can still be eligible if it was operating for any 8-week period between: ∙ Feb. 15, 2019 and June 30, 2019; OR ∙ May 1, 2019 and Sept. 15, 2019. Seasonal employers calculate their loan amount differently than non-seasonal employers. Generally, the loan amount is determined by multiplying monthly payroll costs by 2.5. For non-seasonal employers, monthly payroll costs are usually determined by dividing 2019 payroll or payroll from the past year by 12. However, seasonal employers can choose one of three time periods in calculating the amount of its loan: ∙ Feb. 15, 2019 – May 10, 2019 ∙ March 1, 2019 – June 30, 2019 ∙ May 1, 2019 – Sept. 15, 2019 PAGE 9