May 05, 2020
Ag businesses now eligible for SBA Economic Injury Disaster Loans
The Small Business Administration will begin accepting new Economic Injury Disaster Loan (EIDL) and EIDL Advance applications on a limited basis only to agriculture, to provide relief to U.S. agricultural businesses in response to the COVID-19 pandemic. 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.Eligible borrowers must meet the following:
- Agricultural businesses include 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)).
- Agricultural businesses with 500 or fewer employees.
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.
Historically, the SBA has been prohibited by law from providing disaster assistance to agricultural businesses. However, recent legislation opened up this emergency assistance avenue to keep ag businesses viable and to bring stability to the nation’s food supply chain.
For more information and to apply, click here.