An overview of the Paycheck Protection Program (PPP) loans and implications for agricultural enterprise recovery from COVID

Authors

  • Iryna Demko Cleveland State University
  • Ana Claudia Sant’Anna West Virginia University
  • Kathleen (Chyi Lyi) Liang Center for Environmental Farming Systems and North Carolina Agricultural and Technical State University

DOI:

https://doi.org/10.5304/jafscd.2021.111.003

Keywords:

Paycheck Protection Program (PPP), Agriculture, Entrepreneurship, COVID-19, Pandemic, Governmental Support

Abstract

In this policy and practice brief, we analyze the U.S. Paycheck Protection Program (PPP). The PPP provided loans to support businesses during the COVID-19 pandemic. Some businesses received timely relief from the PPP loans, while some were not able to acquire assistance. Production agricul­ture received 617,128 PPP loans totaling $17 billion.[1] The reach of PPP loans across the country was broad. In 80% of U.S. zip codes, at least one farm received a PPP loan. The average size of the loan in agriculture ($27,744) was substantially smaller than the national average ($74,156). The authors conducted interviews with PPP recipients and present some findings from those. The most recent data reveal challenges and opportunities for agricultural businesses, depending on their scale of operations and regional disparities. Community organizations working with small agriculture-related businesses need to be aware of various impacts while providing future assistance.

[1] All currencies are U.S. dollars.

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Author Biographies

Iryna Demko, Cleveland State University

Research Associate, Center for Economic Development, Maxine Goodman Levin College of Urban Affairs

Ana Claudia Sant’Anna, West Virginia University

Assistant Professor, Division of Resource Economics and Management

Kathleen (Chyi Lyi) Liang, Center for Environmental Farming Systems and North Carolina Agricultural and Technical State University

W. K. Kellogg Distinguished Professor of Sustainable Agriculture, Director, Center for Environmental Farming Systems, and College of Agriculture and Environmental Sciences, North Carolina Agricultural and Technical State University

Published

2021-10-28

How to Cite

Demko, I., Claudia Sant’Anna, A., & Liang, K. (2021). An overview of the Paycheck Protection Program (PPP) loans and implications for agricultural enterprise recovery from COVID. Journal of Agriculture, Food Systems, and Community Development, 11(1), 1–8. https://doi.org/10.5304/jafscd.2021.111.003

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