Knowledge Exchange

COVID-19 Resource Hub

July 27, 2020


We are pleased to welcome customers back into our offices, by appointment only. All office visitors must wear a face mask for the duration of their visit. Meetings will be kept to assigned meeting spaces that will be regularly sanitized. Please be in touch with your local office if you’d like to schedule a visit.

Contents

Paycheck Protection Program

If you are a Farm Credit East customer and have yet to apply for a Paycheck Protection Program (PPP) loan, review the resources below to submit your application.

PAYCHECK PROTECTION PROGRAM LOAN FORGIVENESS Information

For those businesses that have a Paycheck Protection Program (PPP) loan, we know that loan forgiveness is important to you and your business. We encourage you to begin preparing now so you have what you need when you’re asked to provide documentation in support of your PPP loan forgiveness request.

Access Frequently Asked Questions

The Small Business Administration has yet to announce the procedure details of the Paycheck Protection Program’s loan forgiveness. Once the specifics are released, lenders like Farm Credit East and Kabbage will have a better understanding of how to proceed with accepting forgiveness applications. In the meantime, here is the most up-to-date summary of loan forgiveness developments.

Timeline realities - The PPP Flexibility Act's impact on loan forgiveness

  • All PPP borrowers have 24 weeks to spend PPP funds. (This 24-week period began the date the funds were received; this timeline is extended from the original 8 weeks)
  • PPP borrowers have an additional 10 months to apply for forgiveness after the 24 weeks end
  • These PPP loan terms and conditions demonstrate flexibility, but require careful attention to ensure continued compliance

Loan forgiveness applications

  • Without detailed SBA instructions, borrowers cannot verify key application details
  • Farm Credit East and Kabbage are not yet accepting applications. To begin accepting applications, it is necessary to wait for the SBA to clarify these details
  • This guidance may not be available until August 

Free Resources

Join our weekly, live Q&A sessions Wednesdays at 9:00 AM for those producers who have specific questions and to review any additional guidance from the Small Business Administration. Join a Q&A session here

For a top-to-bottom guide on preparing for PPP loan forgiveness, click here for the July 23 webinar recording.

Other reference material

  • For information specific to Form 943 and SBA resource officesclick here.
  • For the weekly "homework" updates presented July 8, 2020, click here.
  • Visit Sba.gov and Treasury.gov for information on loan forgiveness. It is your obligation, as the borrower, to understand the SBA rules, but we're here to help in any way we can.

Let us help with one-on-one consulting

  • Book a time with a consultant to get answers specific to your business on a fee basis. Phone or virtual meetings are available.
  • Farm Credit East consultants can also complete your application for you, on a fee basis. Contact us today to learn more.

Economic Injury and Disaster Loans

In April, Congress increased funding for the Paycheck Protection Program (PPP) and for Emergency Economic Injury Disaster Loan (EIDL) grants. This bill was signed into law on April 24.

The law also includes an important change to the EIDL program, allowing agricultural enterprises with not more than 500 employees to be eligible to receive grants and loans. Previously most agricultural enterprises were not eligible for EIDL. From when the law providing additional funding was signed in April until June 15, only ag businesses were eligible to apply. The program is now open to all businesses.

Farmers and agribusinesses can apply for low-interest loans through EIDL and may also qualify for up to $10,000 in emergency grants. To be eligible, a farmer or agribusiness will have to show economic harm as a result of the pandemic. The emergency grants are limited to $1,000 per employee up to a max of $10,000. Note for producers who have applied for the PPP, EIDL emergency grants would need to be rolled into the forgivable portion of any PPP loan. Note that EIDL loan documents indicate that producers with EIDL loans receiving Commodity Food Assistance Payments (CFAP) may be required to pay them down with proceeds from CFAP. Additional guidance on this issue is needed. 

Compare the PPP to the EIDL in May's Knowledge Exchange Partner.

Main Street Lending Program

The Main Street Lending Program (MSLP) was established by the Federal Reserve to lend to small and medium sized businesses impacted by COVID-19. The loans are for five years and range in size from $250,000 to $300 million. They are not grants or forgivable loans. Agricultural, forest products and fishing businesses are eligible to apply.

Loans are made by private lenders, however, note that Farm Credit East and other Farm Credit institutions ARE NOT eligible to participate. For more information on the program, click here.

USDA Direct Payments for Farmers

Beginning on Tuesday, May 26, the USDA Farm Service Agency will begin accepting applications from producers with COVID-related losses for a wide range of commodities. Eligible producers will receive payments based on calculations USDA has made of national losses, multiplied by the individual producer’s documented production or sales. Click here to learn more about how payments will be calculated for various commodities.

Agriculture Worker and Employer Safety

Interim guidance from the CDC and U.S. Department of Labor released in June provides a control plan template to aid agricultural operations in protecting ag workers from COVID-19. Agricultural employers and management should identify risks and work to ensure agricultural worker safety with the strategies recommended. Visit CDC.gov to learn more.

Federal and State Resources on COVID-19

Farm Credit East has compiled a list of the most pertinent COVID-19 resources from the federal government, state departments of agriculture and the seven Northeast state governments in Farm Credit East’s territory.

Find Your State Resources

Working with Customers on Loan Adjustments

Farm Credit East is committed to helping our customers through this difficult time. We’ve been getting a large number of requests for assistance with loans. We want to assure you we have a number of options for making payment adjustments to existing loans and will respond to everyone requesting payment relief.

To help us better understand your specific circumstances and process your request:

Protect Yourself Against Scams

Stay vigilant, especially during a time of crisis, when stress can be high and we’re looking for answers. If you've received an EIDL or PPP loan, keep an eye on your accounts for suspicious activity or fraud; learn more at Sba.gov. For more security awareness information, visit the Fraud Information Center, provided by CoBank, our valued partner and funding bank.

Tax Planning and Preparation

Tax Talks

Today's Harvest Blog

Farm Credit East’s Tax Talks has the latest information on important tax law changes and their relevance to Northeast agriculture and Farm Credit East customers. 

A message for tax clients regarding COVID-19

Farm Credit East is committed to providing you with the tax expertise and personal service that you have come to expect. If your taxes are not yet complete, we want to assure you that our tax staff is still hard at work.

  • Working Remote: The majority of our staff are working remotely to limit the potential to spread the virus. Farm Credit East converted to a “paperless” tax process last year and we use cloud-based software for tax preparation, so our tax staff can work wherever they have an internet connection.
  • Paperwork Drop-off: If you want to drop off information at the office, you will be asked to leave it in a designated area. Give us a call if you have confidential information so that we retrieve it promptly. If you have access to a scanner, scan your information and send it by secure email to your preparer.
  • Virtual and In-person Meetings: Customer meetings are by phone, online or in office, by appointment. We want to meet with you on your terms, so be in touch with your Farm Credit East representative to schedule a meeting how you feel most comfortable.
  • Electronic Delivery: Please consider taking electronic delivery of your tax return. We are happy to send your return and source documents by secure email. This provides you with a PDF of your return that’s easier to store and allows you to print a copy whenever its needed. Please confirm your email address with your local office.

Payroll

The Families First Coronavirus Response Act had many implications for businesses. Chris Laughton, Director of Knowledge Exchange, highlights how the FFCRA impacts payroll and tax credits for businesses during the COVID-19 pandemic in this post, Payroll Provisions of COVID-19 Relief Measures

Paid sick leave and expanded medical leave

Sections of the Families First Coronavirus Response Act may impact your business. Your employees may be entitled to leave for specific reasons related to COVID-19 as outlined in guidance from the U.S. Department of Labor. These protections apply to all employers with fewer than 500 employees. Businesses with fewer than 50 employees may be exempt from the requirement to provide paid sick leave to employees who are caring for their children as a result of school closings or loss of childcare services.

Display this signage provided by the Department of Labor in an area where your employees can readily see it.

Knowledge Exchange COVID-19 Resources

Recent posts from Today's Harvest:

For upcoming webinars, visit FarmCreditEast.com/webinars

July 2020 Knowledge Exchange Partner

Customer Assistance Program

As a customer-owned cooperative, Farm Credit East is committed to providing the services and resources that our members need. That is why we offer assistance and counseling services through the ESI Group, at no additional cost to our customers. Visit FarmCreditEast.com/cap for more information.