Reminder: COVID-19 Disaster Assistance Still Available

Small Business Administration (SBA) Disaster Loans

HOW TO APPLY FOR SBA DISASTER ASSISTANCE:

Click here to apply. This loan is available to agriculture and aquaculture businesses.

In response to the Coronavirus (COVID-19) pandemic, small business owners in all U.S. states, Washington D.C., and territories were able to apply for an Economic Injury Disaster Loan (EIDL) advance of up to $10,000. 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.

SBA has resumed processing EIDL applications that were submitted before the portal stopped accepting new applications on April 15 and will be processing these applications on a first-come, first-served basis. SBA will begin accepting 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.

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.

Loan terms:

3.75% interest rate for small businesses.
12 month payback grace period.
Maximum 30 year payback term.

Paycheck Protection Program (PPP)

HOW TO APPLY FOR THE PPP:

Applications can be submitted with your bank or SBA lender. Please contact your bank or local SBA lender for more information. Most lenders are accepting applications online.

The Paycheck Protection Program is a loan designed to provide a direct incentive for small businesses to keep their workers on the payroll.

SBA will forgive loans if all employees are kept on the payroll for eight weeks and the money is used for payroll, rent, mortgage interest, or utilities.

You can apply through any existing SBA 7(a) lender or through any federally insured depository institution, federally insured credit union, and Farm Credit System institution that is participating. Other regulated lenders will be available to make these loans once they are approved and enrolled in the program. You should consult with your local lender as to whether it is participating in the program.

Frequently Asked Questions for Lenders and Borrowers (5/13/2020) | How to Calculate Loan Amounts

Paycheck Protection Program (PPP) Information and Forgiveness Guidelines

Loan Forgiveness: The loan will be fully forgiven if the funds are used for payroll costs, interest on mortgages, rent, and utilities over the eight-week period, beginning on the date of disbursement. At least 75% of the forgiven amount must be used for payroll. Forgiveness is based on the employer maintaining or quickly rehiring employees and maintaining salary levels. Forgiveness will be reduced if full-time headcount declines, or if salaries and wages decrease.
Interest: The PPP interest rate for all non-forgivable funds is 1%.
Repayment: Loan repayment for non-forgivable funds is deferred for six months from initial disbursement. Loans will be due in full two years after the date of initial disbursement.

Please note that some information or requirements listed above may differ with your bank. Please check your loan agreement of contact your lender for verification of any information in question.

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