Letter to Jovita Carranza, Administrator of the US Small Business Administration - Joyce Fights to Provide Relief for PA Farmers

Letter

Dear Administrator Carranza:

Thank you for your leadership during these difficult times. We are confident that your experience and guidance as the Small Business Administrator will allow small businesses to ultimately prevail.

As you know, the CARES Act established the Payment Protection Program to provide small businesses, nonprofits, veterans organizations, Tribal business concerns, sole proprietorships, self-employed individuals, and independent contractors with desperately needed financial relief. We appreciate the efforts of the Small Business Administration and the Department of the Treasury to quickly provide needed guidance for both borrowers and lenders. However, we are concerned that farmers have been denied the opportunity to participate in this program because of confusion surrounding applicable size standards.

Congress defined a small business under the Payment Protection Program as a business with less than 500 employees. This clearly demonstrates the Congressional intent was not to include limitations on yearly revenue or receipts. The omission of these standards is especially crucial for our agricultural producers who may have significantly higher receipts or revenue, despite their modest net income. Many farmers are currently struggling from a loss of revenue without sales from restaurants and farmers market. Further, many farmers diversify their operations with commercial activities to supplement their income. These revenue streams including creameries, agritourism events, and on-site sales have similarly been halted by COVID-19.

Farmers play a critical role in our economy and we strongly believe that this program was intended to include these vital members of our community. As you know, the United States Department of Agriculture released guidance that states farmers and rangers are eligible for PPP loans. Specific guidance from your office on farmers' eligibility will ensure that rural job creators have access to essential capital. We ask that you release clear guidance to lenders which reflects Congressional intent to include small businesses under 500 employees, regardless of annual revenue.