Joyce Fights to Provide Relief for PA Farmers

Altoona, PA Congressman John Joyce, M.D. (PA-13), the top Republican on the House Small Business Subcommittee on Rural Development, Agriculture, Trade, and Entrepreneurship, recently led a letter to Small Business Administration (SBA) Administrator Jovita Carranza encouraging the agency to expand its support for farmers in the face of the coronavirus crisis by clarifying guidance surrounding the Paycheck Protection Program. Dr. Joyce was joined by five fellow Members of Congress on this letter to Administrator Carranza.

"In Pennsylvania and across the country, our farmers are working hard to strengthen our supply chain and keep healthy food on American tables during this difficult and uncertain time even as they suffer substantial losses from the downturn in sales to restaurants and other commercial customers," said Dr. Joyce. "The SBA, in an unprecedented timeframe, has done an incredible job to rollout the Paycheck Protection Program to support American workers and assist our small businesses. Now, I encourage Administrator Carranza and her team to ensure that our farmers also receive the help that they need to weather this storm and keep our country going."

Established by the Coronavirus Aid, Relief, and Economic Security (CARES) Act, the Paycheck Protection Program allows small businesses with fewer than 500 employees to apply for forgivable loans to cover payroll and other key operating expenses. Under current guidelines, there is confusion in the agriculture community about the qualifications for their businesses, which yield a high yearly revenue, to qualify for these loans. Dr. Joyce and his colleagues are encouraging the SBA to clarify its guidelines to explicitly communicate that this assistance is available for farmers and ranchers, both of which are critical job creators in rural communities.

"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," they wrote. "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."

Dr. Joyce was joined on his letter by Rep. Dan Bishop (NC-9), Rep. Fred Keller (PA-12), Rep. Lloyd Smucker (PA-11), Rep. Guy Reschenthaler (PA-14), and Rep. Kevin Hern (OK-1).

Read the full text of the letter below:

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.

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