Update on PPP-SBA Loans, The Families First Coronavirus Response Act (FFCRA) Requirements for Employers, RMA
By Brian Breaux
Louisiana Farm Bureau Federation
Additional Information on SBA - Payroll Protection Program (PPP)
Local banks that are SBA 7(a) lenders are now submitting applications for businesses including agricultural operations for the Payroll Protection Program – SBA Loan Program. Please refer to last week’s letter for the rules for the PPP. The borrower application form is 4 pages long and the link for all PPP information and SBA – PPP Borrower Loan Application is:
https://home.treasury.gov/policy-issues/top-priorities/cares-act/assistance-for-small-businesses
Agricultural concerns regarding NAICS occupational code revenue limits being used to determine eligibility for agricultural operations have been resolved and agricultural operations are eligible to apply for forgivable SBA-PPP loans to pay workers’ salaries regardless of their farm income level. However, at this time, H-2A wages are not eligible for SBA loan forgiveness under the PPP.
Last week, several local banks did report SBA system problems when trying to complete and submit SBA applications for the PPP that hopefully are now resolved. SBA-PPP loan applications are expected to exceed the funds approved by Congress so please contact your bank and submit your SBA-PPP loan application immediately if you are interested. Please note, the SBA changed the interest rate on SBA – PPP loans from .5% to 1%. SBA-PPP loan maturity remains at 2 years.
ALERT: The Families First Coronavirus Response Act (FFCRA) – Requires All Employers to Post Employee Rights Under the FFCRA
"The Families First Coronavirus Response Act" (FFCRA) contains a requirement that all employers must post a Notice that outlines the rights of all employees under the FFCRA. The information poster that contains the employee rights under the FFCRA can be viewed and downloaded from the Department of Labor's website at https://bit.ly/33Wa8Ar. The poster's Spanish version can be viewed and downloaded at https://bit.ly/3amSokg It is recommended that you download and post this FFCRA employee rights information poster at a prominent location at your farm and also post the Spanish version if you have Spanish speaking workers. The FFCRA requires employers to provide their employees with paid sick leave and expanded family and medical leave for specified reasons related to COVID-19. These provisions will apply from April 1, 2020 through December 31, 2020.
Risk Management Agency (RMA) Authorizes Self-Certification Replant Inspections for Certain Crops and Unit Sizes and Authorizes Waivers for Witness Signatures
USDA’s Risk Management Agency (RMA) is authorizing self-certification on replant inspections and waiving witness signatures in certain situations as part of a broader suite of flexibilities to support producers during the coronavirus pandemic. Specifically, Approved Insurance Providers (AIPs) may allow the use of self-certification replant inspections for certain crops with 100 gross acres (before considering share) per unit in lieu of 50 acres, and they may waive the witness signature requirement for approval of Assignment of Indemnity through July 15, 2020, for applicable crop years.
“RMA recognizes the challenges the crop insurance industry and America’s farmers and ranchers face,” RMA Administrator Martin Barbre said. “We will continue to provide flexibility that supports the health and safety of all parties while also ensuring the Federal crop insurance program continues to serve as a vital risk management tool.”
Many state and local governments have issued “stay-at-home” orders in response to the COVID-19 pandemic, which may prevent loss adjusters from completing on-the-farm replant inspections and obtaining associated signatures required for replant certification purposes. In the absence of “stay-at-home” orders, loss adjusters and policyholders may also be prevented from meeting in person due to concerns of spreading COVID-19.
Replant Self-Certification
For the 2020 crop year only, AIPs are authorized to allow self-certification replant inspections for up to 100 gross acres (before considering share) per unit in lieu of 50 acres.
Authorized crops for self-certification of up to 100 acres for replant include: barley and wheat not covered by the Winter Coverage Endorsement (both initially planted winter and spring crops), buckwheat, canola and rapeseed, corn, dry beans, flax (spring-seeded only), grain sorghum, mustard, oats (spring-seeded only), popcorn (including popcorn revenue), peanuts, safflowers, soybeans, sugar beets and sunflower seed.
Assignment of Indemnity
AIPs are authorized to waive the witness signature requirement for approval of Assignments through July 15, 2020. The insured’s and creditor’s signature on the Assignment will be required in a pen and ink signature and in the hand of the person whose signature is required or an acceptable electronic (digital) signature in accordance with the AIPs’ established Electronic Business Implementation Plan and applicable RMA procedures.
More Information
RMA announced on March 27 other flexibilities, including enabling producers to send notifications and reports electronically, extending the date for production reports and providing additional time and deferring interest on premium and other payments.
RMA staff is working with AIPs and other customers by phone, mail and electronically to continue supporting crop insurance coverage for producers. Farmers with crop insurance questions or needs should continue to contact their insurance agents about conducting business remotely (by telephone or email). For the most current updates on available services, visit farmers.gov/coronavirus.