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Small farms can apply for another set of federal disaster loans under a new deal reached yesterday by Congress and the Trump Administration in response to COVID-19.
The agreement allows agricultural operations with fewer than 500 employees to qualify for the Small Business Administration’s (SBA) Economic Injury Disaster Loan (EIDL), which offers up to $10,000 in advance to businesses that are losing revenue amid the pandemic. Learn more and apply for EIDL.
The deal also replenishes the depleted Paycheck Protection Program (PPP), which provides forgivable loans to small businesses to keep their workers on the payroll. Read OEFFA’s April 13 Farm Policy Matters blog post for more information about PPP and how to apply.
The initial funding for the program dried up quickly, and SBA was slow to approve agricultural lenders, leaving many farmers and ranchers unable to access these loans. The new agreement sets aside an additional $321 billion for the program, including $60 billion for small businesses without access to large financial institutions, but funding is not expected to last long, maybe just a matter of days.
These loans are on a first-come, first-served basis, so we recommend applying as soon as you can.
If you apply for PPP, or contact your member of Congress, send us a note describing your experience so that we can better serve and advise our members.
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