FFSC Offers Accounting Guidelines on PPP, EIDL Forgiveness

The Farm Financial Standards Council has prepared guidelines for accounting for forgiveness of Paycheck Protection Program (PPP) and Economic Injury Disaster Loan funds. You can get them on our website now!
Close up of mature corn field with cloudy sky in the background

The Farm Financial Standards Council has prepared guidelines for accounting for forgiveness of Paycheck Protection Program (PPP) and Economic Injury Disaster Loan funds. You can download the guidelines here.

The PPP and Covid-19 EIDL programs were established by the 2020 CARES Act. Although farm businesses were originally excluded by the Small Business Administration, they were later added as qualifying for the programs. A principle feature of these programs was the possibility of partial to full forgiveness of PPP loans if certain restrictions on use of the funds were met. Our document offers recommendations on financial accounting for these loans and potential forgiveness.

The Council stresses that this guidance does not address the potential complex tax consequences of how PPP loan proceeds are utilized, which could affect tax deductibility of these expenses. FFSC urges a discussion with a tax professional for updated tax information and guidance.

The Council is a non-profit organization focused on creating and promoting uniformity and integrity in financial reporting and analysis for agricultural producers.

Share on facebook
Facebook
Share on twitter
Twitter
Share on linkedin
LinkedIn