To all Rural Water Cooperatives:
We have just received this and it appears that the U.S. Treasury department has clarified today that cooperatives have been determined to be eligible under the Paycheck Protection Program. This is based their discussions, and the attached FAQ sheet. Question 35 on the last page states:
Question: Are agricultural and other forms of cooperatives eligible to receive PPP loans?
Answer: As long as other PPP eligibility requirements are met; small agricultural cooperatives and other cooperatives may receive PPP loans.
We have no additional information than what has presented here. This could be interpreted in different ways, but apparently agencies believe that 501(c)12 cooperatives are eligible.
Our understanding is that applications under CARES 2 open up Monday morning, so if you want to apply for these monies then you may want to act on it as soon as possible. The Treasury’s webpage is still being updated, so I’m sure it will be a crazy rush to get in applications first thing next week.
Kirby Mayfield, CEO
STAKEHOLDER ANNOUNCEMENT: USDA Leadership from Farm Production And Conservation and Rural Development Update Stakeholders On Accessing SBA Relief Programs
(April 24, 2020) USDA’s Under Secretary for Farm Production and Conservation Bill Northey and Deputy Under Secretary for Rural Development Bette Brand today held a joint announcement to provide guidance from the respective agencies on the resources provided in the Paycheck Protection Program and Health Care Enhancement Act (HR.266) recently passed by Congress and signed into law by President Trump. | Stakeholder Announcement