SBA announces economic injury disaster loans now available to agricultural businesses
Last updated 5/7/2020 at 2:23pm
WASHINGTON – Jovita Carranza, administrator of the U.S. Small Business Administration, announced Monday, May 4, that agricultural businesses are now eligible for SBA’s Economic Injury Disaster Loan and EIDL Advance programs.
SBA’s EIDL portal reopened May 4 as a result of funding authorized by Congress through the Paycheck Protection Program and Healthcare Enhancement Act. The legislation, signed into law by President Donald Trump one week ago, provided additional funding for farmers and ranchers and certain other agricultural businesses affected by the coronavirus pandemic.
“For more than 30 years, SBA has been prohibited by law from providing disaster assistance to agricultural businesses; however, as a result of the unprecedented legislation enacted by President Trump, American farmers, ranchers and other agricultural businesses will now have access to emergency working capital,” Carranza said. “These low-interest, long-term loans will help keep agricultural businesses viable while bringing stability to the nation’s vitally important food supply chains.”
Agricultural businesses include businesses engaged in the legal 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. Eligible agricultural businesses must have 500 or fewer employees.
The SBA will begin accepting new EIDL applications on a limited basis only, in order to provide unprecedented relief to U.S. agricultural businesses.
For agricultural businesses that submitted an EIDL loan application through the streamlined application portal before the legislative change, SBA will move forward and process these applications without the need for reapplying.
All other EIDL loan applications that were submitted before the portal stopped accepting new applications April 15 will be processed on a first-in, first-out basis.
For more information, visit https://www.sba.gov/Disaster.
Submitted by U.S. Small Business Administration.