Small Business Administration Loans
The Small Business Administration has created a Small Business Guidance & Loan Resources webpage, including resources and information on how to apply for a COVID-19 Economic Injury Disaster Loan.
Paycheck Protection Program
The CARES Act appropriated $349 billion for the Paycheck Protection Program. The PPP is a guaranteed loan program administered by the Small Business Administration. The purpose of the program is to support small businesses and help support their payroll during the coronavirus situation.
Agricultural producers, farmers, and ranchers with 500 or fewer employees whose principal place of residence is in the United States are eligible for PPP. Farms are eligible if:
- the farm has 500 or less employees, OR
- it fits within the revenue-based sized standard, which is on average annual receipts of $1 million.
Additionally, a farm can qualify for PPP if it meets SBA’s “alternative size standard.” The “alternative size standard” is currently:
- a maximum net worth of the business not more than $15 million, AND
- the average net income Federal income taxes of the business for the two full fiscal years before the date of the application be not more than $5 million.
As long as other eligibility requirements are met, small agricultural cooperatives may receive PPP loans. Other forms of cooperatives may be eligible provided they comply with all other Loan Program Requirements.
Learn more about PPP and your potential eligibility by visiting usda.gov/coronavirus and sba.gov/funding-programs/loans/coronavirus-relief-options.
Economic Injury Disaster Loans
The SBA has begun to accept 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.
- 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
. Additional information on Economic Injury Disaster Loans can be found here