Financial relief available to businesses and producers

Three forms of financial relief have been made available locally, one as a result of the COVID-19 pandemic and the others to address the ongoing drought conditions in this area.

The first is a tax credit that aims to offset potential increase to the unemployment insurance (UI) taxes that businesses are expected to pay in the future. The relief was issued last week through an executive order from Governor Mark Gordon.

The order removes all UI benefit claims between March 13 and December 31, 2020, from businesses whose accounts were charged for those claims. This was authorized by the Legislature and aims to ensure employers don’t continue to experience significant UI tax rate increases from the system-wide surge in employment claims during the pandemic.

Employers who paid increased unemployment taxes in 2021 will also be provided credits.

“We recognize that every employer in the state was impacted in some way by the pandemic, and many saw their unemployment insurance rates increase – some substantially – this year,” said the Governor.

“This executive order protects Wyoming businesses that have continually risen to the challenges in this new environment.” 

Gordon will also backfill Wyoming’s UI Trust Fund using $58 million in federal funds to ensure the tax relief does not impact future tax rates. This addition comes on top of the $64 million already added to the fund.

Employers in Wyoming will see a decrease in their unemployment tax rates after the end of the month and will receive a notification from the Wyoming Department of Workforce Services of the value of credits that can be applied to future unemployment taxes.

Meanwhile, the United Stated Department of Agriculture (USDA) has designated Lawrence County in South Dakota a primary natural disaster area due to ongoing drought conditions. This also affects Crook County as a contiguous county, which makes producers in this area eligible for emergency credit to assist in recovering from the disaster.

“A Secretarial disaster designation makes farm operators in primary counties and those counties contiguous to such primary counties eligible to be considered for certain assistance from the Farm Service Agency (FSA), provided eligibility requirements are met,” states a letter from Thomas J. Vilsack, Secretary of the USDA.

“This assistance includes FSA emergency loans. Farmers in eligible counties have eight months from the date of a Secretarial disaster declaration to apply for emergency loans.”

As of October 14, Crook County was still largely in a state of extreme drought, with the southeastern corner listed as severe or moderate drought by the U.S. Drought Monitor.

The designation means that small, non-farm businesses in this county are now eligible to apply for low-interest federal disaster loans from the U.S. Small Business Administration (SBA). The Economic Injury Disaster Loans of up to $2 million are intended to offset economic losses due to reduced revenues caused by drought.

“SBA eligibility covers both the economic impacts on businesses dependent on farmers and ranchers that have suffered agricultural production losses caused by the disaster and businesses directly impacted by the disaster,” stated Tanya N. Garfield, Director of SBA Disaster Field Operations Center-West, in a press release.

Business that may qualify include small non-farm businesses, small agricultural cooperatives, small businesses engaged in aquaculture and most private nonprofit organizations of any size. They are intended to help meet financial obligations and operating expenses that could have been met had the disaster not occurred.

Visit disasterloanassistance.sba.gov for more information about eligibility and to download applications. The deadline to apply is May 20, 2022.

Farm Service Agency loans are also available and can be used for recovery needs including replacement of essential items, including livestock; reorganization of a farming operation; or refinancing of certain debts. Loan applications are available through the agency’s website and are reviewed based on extent of loss, security available and repayment ability.