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RBC I Agricultural businesses are now eligible for the Small Business Administration’s Economic Injury Disaster Loan (EIDL) and EIDL Advance programs. The EIDL portal reopened Monday as a result of funding authorized by Congress through the Paycheck Protection Program and Healthcare Enhancement Act.
The legislation, signed into law one week ago, provided additional funding for farmers and ranchers and certain other agricultural businesses affected by the coronavirus (COVID-19) 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,” said SBA Administrator Jose Carranza. “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 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 (15 U.S.C. 647(b)). Eligible agricultural businesses must have 500 or fewer employees.
Frances Padilla, SBA Colorado District Director, lauded the decision that opens up more support for Colorado agricultural enterprises affected by COVID-19.
“We recognize how important agricultural activities are to the economy of our state.” Padilla said. “Expanding access for federally legal agricultural enterprises under EIDL gives these critical entities an opportunity to equally apply for all of the SBA resources open to all other eligible small businesses and non-profits. We look forward to assisting Colorado agricultural businesses who believe the SBA can help them during this difficult time.”
The SBA will begin accepting new EIDL applications on a limited basis only, in order to provide unprecedented relief to U.S. agricultural businesses (http://www.sba.gov/disaster). For agricultural businesses that submitted an EIDL loan application through the streamlined application portal prior to the legislative change, SBA will move forward and process these applications without the need for re-applying. All other EIDL loan applications that were submitted before the portal stopped accepting new applications on April 15 will be processed on a first-in, first-out basis.
For more information, please visit: www.sba.gov/Disaster.