Economic Injury Disaster Loans for Farmers and Ranchers
Farmers and ranchers are now eligible for Economic Injury Disaster Loans (EIDL) through the Small Business Administration (SBA), as of Friday April 24th, 2020. The EIDL program provides an emergency grant of up to $10,000 for small businesses suffering a loss of revenue because of COVID-19.
In response to the Coronavirus (COVID-19) pandemic, small business owners in all U.S. states, Washington D.C., and territories were able to apply for an Economic Injury Disaster Loan advance of up to $10,000. This advance is designed to provide economic relief to businesses that are currently experiencing a temporary loss of revenue. This loan advance will not have to be repaid. SBA will begin accepting new Economic Injury Disaster Loan (EIDL) and EIDL Advance applications on a limited basis only to provide relief to U.S. agricultural businesses.
The new eligibility is made possible as a result of the latest round of funds appropriated by Congress in response to the COVID-19 pandemic.
- Agricultural businesses includes those businesses engaged in the production of food and fiber, ranching, and raising of livestock, aquaculture, and all other farming and agricultural related industries (as defined by section 18(b) of the Small Business Act (15 U.S.C. 647(b)).
- 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.
At this time, only agricultural business applications will be accepted due to limitations in funding availability and the unprecedented submission of applications already received. Applicants who have already submitted their applications will continue to be processed on a first-come, first-served basis. For agricultural businesses that submitted an EIDL application through the streamlined application portal prior to the legislative change, SBA will process these applications without the need for re-applying.
Eligible agricultural businesses may apply for the Loan Advance here.
In this tutorial from Farm Commons, they discuss the specifics of eligibility and how to submit an application through the SBA. Issues with how the program has performed over the past few weeks will also be in the discussion, as well as how EIDL works with other relief options. This is a valuable opportunity, especially for farms unable to receive a Paycheck Protection Program forgivable loan.