Stimulus Package for American Poultry Farmers
Contract Growers from all over the country have been burning up our phones and email at American Poultry Company looking for answers on how to apply for the stimulus. In an attempt to help where we can, we have composed the following details from our contacts in the poultry industry.
The Stimulus:
The stimulus details are out and farmers of poultry can apply for a multitude of funding options. We have detailed the following options, that we are aware of so far, and how they relate to our industry as poultry farmers. At this moment there appears to be 3 options; 1 direct payment and 2 options which are related to small business (SBA). You are not limited to a single option but are able to apply for all 3 if applicable.
Please consult your local bank and CPA for applying, we are not financing or tax professionals.
Adults with Social Security numbers, who are United States residents, and have an adjusted gross income of $75,000 or less would get the full amount of $1,200. Married couples with no children earning $150,000 or less would receive a total of $2,400. For every child age 16 or under, the payment would be an additional $500. Treasury Secretary Steve Mnuchin said checks could go out about three weeks from the passing of the stimulus.
Direct Payment (Option 1)
Adults with Social Security numbers, who are United States residents, and have an adjusted gross income of $75,000 or less would get the full amount of $1,200. Married couples with no children earning $150,000 or less would receive a total of $2,400. For every child age 16 or under, the payment would be an additional $500. Treasury Secretary Steve Mnuchin said checks could go out about three weeks from the passing of the stimulus.
Checks will be mailed or direct deposited to the information you filed on your last tax return, no registering for the check required. More details can be found in this article More...
You can find your adjusted gross income on line 8b of the 2019 1040 federal tax return.
SBA Disaster Grant (Option 2)
Small business owners can get up to a $10,000 advance on an Economic Injury Disaster Loan (EIDL). This Advance may be available even if your EIDL application is declined or pending, and potentially does't have to be repaid. If you need additional assistance, you can find your local SBA office and resource partners at SBA.gov/LocalAssistance.
Apply for the EIDL Here
Additional information on the Economic Injury Disaster Loan (EIDL) can be found Here.
SBA 7(a) Expanded Loan (Option 3)
The CARES Act provides nearly $300 million in funding to the US Small Business Administration. The funding is to help small businesses across the country stay in business. Through qualified SBA lending institutions SBA-7(a) loans are extended to qualifying businesses. This loan program must be administered by an SBA qualified lender. Ask your local bank about the program details but expect the following;
Loan Requirements and Components:
With passage of the CARES act, “Payroll Protection Loans” are now available through the US Small Business Administration. Application for these loans must be made through
a qualified SBA Lender.
Components of the SBA program are as follows:
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Available to businesses with 500 employees or less
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Loan Amount shall be 2.5 times +/- your average monthly payroll for March 1,
2019 thru February 29, 2020. Other calculation methods are utilized for seasonal
businesses and sole proprietorships with owners as lone employees. Reductions for
employees earning more than $100,000 during the period may apply. -
Proceed Use – Proceeds from the loan must be used to retain employees, pay utilities,
and pay interest obligations on mortgage debts. -
Most Interest Rate are 4% fixed for the loan term
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Repayment term of principal and interest monthly across a 10-year term.
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No personal guaranty required
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Loans will not be turned down due to lack of collateral
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The entire or a portion of the principal and interest obligations of these loans may be
forgiven. The amount forgiven shall be equal to the amount of payroll, rent, mortgage
interest, and utility expense incurred in the 8-week period following loan closure
To begin the application process, call your local bank.
Be prepared to provide the following documents and information for the SBA 7(a) Payroll Protection Program Loan
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Loan Application (SBA Form 1919 Click Here) – General borrower
and ownership information. Section I must be completed for all direct borrowers
on the loan. Section II must be provided for all owners of the business. -
General Summary of Business – This can be provided in email form. A very brief paragraph or two stating what product or service the business provides and
how long it has been in business. Please contain the business structure (S-Corp, C-Corp, LLC, Sole-Proprietorship, etc). -
General Summary of Ownership / Management – This can be provided with the
business statement above. Explain who manages the business and management
history and experience in the business and industry. Again, this should be very
brief. -
Dunn & Bradstreet – Search for existing or create a Dunn & Bradstreet number
for your business entity at the following web site Click Here -
Financial Statement Information (12/31/2019) – Provide accountant reviewed
or compiled Balance Sheet and Income Statement for 12/31/2019. Tax returns
for 2019 are acceptable, but not required. -
Payroll Expense Information (3/1/2019 to 2/29/2020) – Information may come
from accountant reviewed financial statements or other payroll system sources.
Why you may want an SBA Loan even if you currently don't need the money.
Integrators could be put in a position soon in which they can not pay growers because their processing lines may shut down. I admit I sound like a total doomsayer, but am trying to address possibilities that are not far-fetched. It would be irresponsible of me not to address the elephant in the room which is farmers are "guns for hire" and not employees of the integrators. We all have treated a virus on our farms at some point, but they occur only on a single farm or local area of farms. When a virus affects processing plant workers and the supply chain slows or, God help us, STOPS, that is when the entire business falls apart. At scale, the only way to deal with such a disaster is to euthanize a major portion of the farms and equalize the rate of poultry coming in and out of the processing plants.
American Poultry Company. Small-town Company, National Footprint.
During times like this, markets and governments are volatile and the information available often changes by the minute! We promise to do our best to inform you of changes in the Commercial Poultry Business that can affect your livelihood. As a company, we are in touch with farmers all over America and get information as it breaks in the industry.
We know the importance of making sure that the poultry market continues, as it feeds America's families! If you have question or comments please contact us. As we learn how farmers are successful navigating these uncharted waters, we will share their successes enabling other farmers to adapt in these troubling times.
If you would like the latest news:
Send us a Text Msg with your email address and we will send you news related to the poultry business as we receive it. 601-324-5520
Our prayers are with you and your families, please stay safe!
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