The U.S. Small Business Administration (SBA) began accepting new Economic Injury Disaster Loan (EIDL) and EIDL Advance applications at noon (EDT) Monday on a limited basis only to provide relief to agribusinesses.
SBA is encouraging all eligible agricultural businesses with 500 or fewer employees wishing to apply to begin preparing their business financial information needed for their application. During this application window, only agricultural business applications will be accepted due to limitations in funding availability and the unprecedented submission of applications already received.
“America’s farmers, ranchers and producers need the same help that other American businesses need during this unprecedented time,” Agriculture Secretary Sonny Perdue said. “This significant new authority signed by President [Donald] Trump will make a tremendous difference for America’s agricultural community.”
SBA’s EIDL portal has been closed since April 15. However, the agency is able to reopen the portal, in a limited capacity, as a result of funding Congress authorized through the Paycheck Protection Program and Healthcare Enhancement Act. The legislation, which was signed into law by the President one week ago, provided additional critical funding for farmers and ranchers affected by the COVID-19 pandemic.
In order to help facilitate this important change to EIDL Loan and EIDL Advance assistance eligibility, SBA is reopening the loan and advance application portal to agricultural enterprises only. For agricultural producers who submitted an EIDL application through the streamlined application portal prior to the legislative change, SBA will move forward and process these applications without the need for reapplying. All other EIDL loan applications that were submitted prior to April 15 will be processed on a first-in/first-out basis.
Here are a few important points about the EIDL program:
- Eligible agricultural businesses must have 500 or fewer employees.
- Loans are for working capital, i.e., to pay bills, provide payroll, etc.
- Applicants may use inventory as collateral if their loan request exceeds $25,000.
- The program offers a forgivable “advance loan” of up to $10,000 that does NOT need to be paid back. The amount of advance is determined by the number of employees — $1,000 per employee up to 10 employees or a maximum advance of $10,000. You count as one employee if you are self-employed. The amount will be directly deposited into your bank account.
- Loan terms are 3.75% for small businesses with terms up to 30 years and payments deferred for the first year.
For more information or to apply, visit this link.
