The US Small Business Administration (SBA) has its) Economic Injury Disaster Loan (EIDL) portal Monday for farms.
SBA Administrator Jovita Carranza announced today that farms are now eligible for the SBA’s EIDL and EIDL Advance programs.
The portal has reopened as a result of funding approved by the Paycheck Protection Program and Health Care Enhancement Act, PL 116-139, which provides additional funding for farmers, ranchers and certain other agricultural businesses affected by the coronavirus pandemic.
EIDL loans can be used to settle fixed debts, payrolls, liabilities, and other bills that cannot be paid due to the effects of the disaster. The interest rate is 3.75% for small businesses and 2.75% for nonprofits. To keep payments affordable, loans are offered with long-term repayments up to a maximum of 30 years, and the terms are determined on a case-by-case basis.
Up to $ 10,000 EIDL Advance Loans are designed to provide economic relief to businesses experiencing temporary loss of revenue and non-repayment.
The SBA accepted new EIDL and EIDL Advance applications only for US agricultural companies as of Monday. This includes companies engaged in the production of food and fiber, livestock, ranching, aquaculture and all other agricultural and farm-related industries within the meaning of Section 18 (b) of the Small Business Act.
The SBA encourages all eligible farms with 500 or fewer employees who wish to apply to begin preparing the financial information required for their application.
Currently, only applications for farms are accepted. For other companies, the SBA stopped accepting new applications on April 15th and will process these applications on a first-come-first-served basis.
For farms that submitted an EIDL application via the optimized application portal prior to the amendment to the law, the SBA processes these applications without having to submit a new application.
– Ken Tysiac ([email protected]) is the YofAthe editor-in-chief.