Congress replenished the Economic Injury Disaster Loan (EIDL) by passing a new law in April that became effective on May 4, which added $60 billion to the program. The SBA reopened its EIDL portal on May 4, 2020, for agricultural businesses to apply for grants and low interest, long-term loans.
Agricultural businesses are defined as businesses engaged in the production of food and fiber, ranching, and raising of livestock, and all other farming and agricultural-related industries. An additional requirement to receive funds under the EIDL is that the agricultural business must have fewer than 500 employees and been in business by January 31, 2020.
The program offers up to $2 million in loans, which can be used to pay debts, payroll, accounts payable, and other bills that farmers and ranchers are struggling with because of the impact of COVID-19. The program provides interest rates at 3.75% with a repayment term up to 30 years. An additional benefit of the EIDL is that agricultural businesses can apply for an advance loan of up to $10,000.
Agricultural businesses can apply directly through the SBA, or by clicking on the link below. Businesses must provide gross income for the 12 month period prior to January 31, 2020, and costs of operating business. Agricultural businesses should apply quickly, as the applicants and funding is on a first-come, first serve basis.
If you have questions about SBA benefits available to agricultural businesses, please give Andrew Huber a call at (402) 397-7300.