Paycheck Protection Program loans provided $5.8 billion to U.S. farm sector in 2020
Researchers at the USDA, Economic Research Service estimate that the Paycheck Protection Program (PPP) provided $5.8 billion to the farm sector in 2020. The PPP was a non-USDA assistance program for small businesses adversely affected by the pandemic. Total Federal Government payments to the farm sector in 2020 were $45.6 billion, meaning that PPP payments were 13 percent of total payments. The Small Business Administration (SBA) administered the PPP, providing forgivable loans to eligible small businesses and certain other entities to allow them to cover some of their payroll costs. Businesses had to meet specific eligibility requirements, such as having positive payroll and/or making profits. The PPP loans were forgiven in full if the loan was used on eligible expenses, including at least 60 percent on payroll expenses. Agricultural producers in California were the largest recipients of PPP loans at $1.1 billion, followed by Washington at $285 million. California leads the Nation in the value of agricultural production and has the highest hired labor expense among States. Other top recipients of PPP loans included Texas ($281.5 million), Iowa ($252.6 million), Illinois ($251.8 million), and Florida ($247 million). The latest publicly available data from the SBA show almost all the PPP loans (98 percent) made to the farm sector in 2020 have been forgiven. This map updates information in COVID-19 Working Paper: Distribution and Examination of Coronavirus Food Assistance Program Payments and Forgivable Paycheck Protection Program Loans at the State Level in 2020, published August 2023.
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