How to calculate the maximum PPP loan amount for self-employed farmers

In this 2-minute read:

  • How to calculate max PPP loan amount for self-employed farmers

Just like most other businesses across America, independent, self-employed farmers are seeing the financial impacts of the COVID-19 pandemic. If your farm has been affected by this crisis, you can apply for a loan under the Paycheck Protection Program in order to receive some funding to help your through this difficult time. 

We’ll guide you through how to calculate the maximum amount you can request from the PPP loan for your farm. 

Sign up for your Womply Free account and we’ll keep you updated on new funding opportunities. Customer relationships thrive when local businesses and consumers are connected through Womply data and technology.

How to calculate PPP loan amount for self-employed farmers

Because farms are a different type of business from a traditional brick and mortar office or store with employees, there are some different steps for you to take when calculating your loan amount. 

Step 1: Locate your 2019 IRS Forms for net profits

You’re going to use the your 1040 tax forms for 2019 to calculate your 2019 net profit (even if you haven’t filed your 2019 taxes yet). Most self-employed farmers use IRS Form 1040 Schedule 1 and Schedule F. Find line 34 on your Schedule F form and note the total amount listed. 

Your IRS Form 1040 Schedule 1 and Schedule F must be included with your PPP loan application. 

Step 2: Calculate the monthly net profit from your farm

Take the amount from line 34 of your Schedule F form and divide it by 12. That will give you your average monthly net profit. 

Step 3: Multiply your monthly net profit by 2.5

Farm businesses can request up to 2.5 times the amount of their average monthly profit. 

Step 4: Include any outstanding EIDL loans

Any businesses that applied for an Economic Injury Disaster Loan (EIDL) can add the outstanding amount of the loan to their PPP loan request. 

Do not include any “advance” of your EIDL loan that you have received for COVID-19 in your request, as that portion doesn’t have to be repaid.

Example calculation for self-employed farmers with an outstanding EIDL loan:

Annual net profit: $72,000
Average monthly net profit: $6,000
Multiply by 2.5: $15,000
Add outstanding EIDL loan amount of $5,000
Total amount to request: $20,000

Haven’t applied for the PPP loan? It’s not too late, but HURRY! The deadline is August 8, 2020

You can still apply for the PPP loan for your farm, but we strongly suggest that you do so quickly. Talk to your lender and get your application submitted ASAP.

Sign up for your Womply Free account and we’ll keep you updated on new funding opportunities. Customer relationships thrive when local businesses and consumers are connected through Womply data and technology.

Blog

How (some) restaurants and food shops are thriving during the pandemic

In this 6-minute read: Why COVID-19 has been an unexpected blessing for some restaurants and food shops How restaurants can […]

Read More

The definitive guide to Google Local Services ads (with walkthrough)

In this 7-minute read: What is Google’s Local Services? How can Local Services ads benefit your business? How to set […]

Read More

Why aren’t my reviews showing up on Yelp?

In this 4-minute read: Why can’t you see your Yelp reviews? How to help reviews show as recommended Ways to […]

Read More

Top video conferencing apps for your remote team

In this 5-minute read: What makes a good video conferencing app? Best video conferencing apps for small business More remote […]

Read More

Best file sharing apps for your virtual or remote team

In this 6-minute read: What is a file sharing app? How can file sharing apps or software help your remote/virtual […]

Read More

Best time tracking tools for your remote workforce: features and pricing

In this 5-minute read: Best time tracking resources for small businesses Employee hour tracking and reporting tools, pricing, and features […]

Read More

See why Womply is the #1 marketing and CRM solution used by 500,000+ businesses.

By submitting this form you agree to Womply’s Services Agreement