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IL | Farmers fall under the 25% rule if they are applying for a "Second Draw." If they did not apply for PPP previously then they can apply for a "First Draw" using the $100k gross income for their wage calculation. It is my understanding that if you applied for a PPP in 2019 and it has been forgiven that you are not eligible to re-calculate using the $100k gross income. You could still apply for a "Second Draw" if you have a 25% reduction in gross receipts in any comparable quarter between 2019 and 2020. An SBA person mentioned that if quarterly income statements are not available that you can use your 2019 and 2020 tax schedules for the 25% comparison. If a farmer has a Schedule F with 25% reduction he likely has a problem bigger than what a PPP loan can fix with the caveat that marketing timing can play. I would suspect most farmers will have not have a reduction on their Schedule F with the government payments that were sent out in 2020. | |
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CFAP3 PPP - 25% decline in revenue rule
