On April 29th, the SBA released its latest guidance and answers to Frequently Asked Questions (READ HERE).

Question #33 speaks to this issue: “Question:  Is there existing guidance to help PPP applicants and lenders determine whether an individual employee’s principal place of residence is in the United States? Answer:  PPP applicants and lenders may consider IRS regulations (26 CFR § 1.1211(b)(2)) when determining whether an individual employee’s principal place of residence is in the United States.”

IRS regulations (26 CFR § 1.1211(b)(2)) states, “(2) Principal residence. In the case of a taxpayer using more than one property as a residence, whether property is used by the taxpayer as the taxpayer’s principal residence depends upon all the facts and circumstances. If a taxpayer alternates between 2 properties, using each as a residence for successive periods of time, the property that the taxpayer uses a majority of the time during the year ordinarily will be considered the taxpayer’s principal residence. In addition to the taxpayer’s use of the property, relevant factors in determining a taxpayer’s principal residence, include, but are not limited to –
(i) The taxpayer’s place of employment;
(ii) The principal place of abode of the taxpayer’s family members;
(iii) The address listed on the taxpayer’s federal and state tax returns, driver’s license, automobile registration, and voter registration card;
(iv) The taxpayer’s mailing address for bills and correspondence;
(v) The location of the taxpayer’s banks; and
(vi) The location of religious organizations and recreational clubs with which the taxpayer is affiliated.”

While not crystal clear, this information suggests it may be permissible. The problem with this “gray area” is that the availability of PPP funds are limited, and on a first come, first served basis. Because of this, NAGA members that use H2A workers may want to consider including them in their payroll calculation. In an article for Cornell University, Washington, D.C. attorney and labor and tax law expert Chris Schulte from the CJ Lake Law Firm advised farms to include their H2A employees in their calculation of payroll. His advice was to claim the cost of their H2A payroll and be prepared to reimburse the government should the money be paid out and the employees later found ineligible. This is in light of the fact that farms can only apply for the funds once.

The fact that a person can only apply once for PPP is the most frustrating part about all of this. Many farms have already applied for PPP loans, with some of them already in receipt of their funds.  Unfortunately, they were led to believe or even directly counseled by banks that they could not include their foreign workers. NAGA is seeking legal advice about the ability to amend PPP loan applications.

Facebook

Comments Box SVG iconsUsed for the like, share, comment, and reaction icons
This message is only visible to admins.
Problem displaying Facebook posts. Backup cache in use.
Error: The user must be an administrator, editor, or moderator of the page in order to impersonate it. If the page business requires Two Factor Authentication, the user also needs to enable Two Factor Authentication.
Type: OAuthException

The November/December issue of NAGA News will hit mailboxes any day now. If you can’t wait to read the hard copy, log in to northamericangamebird.com and read it online now! ... See MoreSee Less

The November/December issue of NAGA News will hit mailboxes any day now. If you can’t wait to read the hard copy, log in to northamericangamebird.com and read it online now!

Who is enjoying the September/October issue of NAGA News? 🙋 ... See MoreSee Less

Who is enjoying the September/October issue of NAGA News? 🙋

Happy Independence Day from all of us at #NAGA! ... See MoreSee Less

Happy Independence Day from all of us at #NAGA!

The July/August issue of NAGA News is hitting mailboxes this week. We hope you enjoy our latest issue! #NAGA ... See MoreSee Less

The July/August issue of NAGA News is hitting mailboxes this week. We hope you enjoy our latest issue! #NAGA

A NAGA member asks the following:

“I’m looking for a lab that can test quail and eggs. We are having low hatch rates. Can anyone recommend a lab?”

Please respond in the comments with a recommendation, or you’re welcome to message NAGA!
... See MoreSee Less

Comment on Facebook

Well have a call into the Utah lab that I made a phone call to a member and he recommended.... Guess will see if they call me back. the GA lab I cannot get any response to.

Contact your ag extension service

Contact Jeff Mayes, has helped me through a lot of hatching difficulties.

View more comments

Instagram