New rule makes seasonal fishermen and crew members eligible for paycheck protection program
A new rule Added to the Paycheck Protection Program allows commercial fishing companies to include the payroll of their crew members when they apply for the Paycheck Protection Program. The state announced the change today.
Previously, the PPP recognized crew members as “independent” by the Internal Revenue Service. Senator Lisa Murkowski, Dan Sullivan and Congressman Don Young urged the Treasury and Small Business Administration Department to make the fix.
Murkowski said last month that previous demands left crew wages out of the equation when applying for loans.
“The PPP really didn’t take into account that so many of our businesses in Alaska are seasonal,” she said. “When you think of fishing in Bristol Bay, it is definitely a seasonal activity. This is the very definition of it.
In the announcement, she said that “allowing fishermen to get the resources they need through P3s isn’t just fair, it means these businesses so essential to Alaska have a chance. to beat”. Senator Sullivan called the new rule a “common sense solution.”
Individual crew members will be able to calculate up to $ 100,000 in payroll over a 12-week period. The PPP will be two and a half times higher than the total average. For example, if a crew member made 100,000, that would be divided by 12, which equals $ 8,300. This is then multiplied by 2.5, and it equals $ 20,800. Fishermen will have until June 30 to apply for PPP funds.
People can apply for PPP here.