5/8/20 — EIDL Update
By Josh Roe, Kansas Corn’s VP of Market Development and Public Policy and a Kansas farmer
Haven’t applied for EIDL yet?? WHAT ARE YOU WAITING FOR?!
“It took me less than 10 minutes to apply for the EIDL program on the SBA website and I received my funds the next day.” — Josh Roe
I know that we are all weary from the completely new set of acronyms from the SBA and USDA (There is another one!) and if the applications are open/closed, does agriculture qualify? Do I have to pay it back? Trust me, I’m right there with you!
So, I’m not going to go into a barrage of alphabet soup or send you a bunch of links, I’m simply going to tell you to take 10 minutes and apply for the EIDL program!
Here are step by step instructions:
- Have your 2019 tax return (preferably) or know your gross income for the previous 12 months (I simply used by Schedule F for this).
- Go to this website: https://covid19relief.sba.gov/#/
- Fill in the required information, if you are applying via Schedule F, you only need lines 9, 33 and 34.
- In my case, and at least six other people I have talked to, the funds were electronically deposited within 24 hours.
As of now, ONLY agricultural businesses may apply, so PLEASE take advantage of this golden opportunity. Despite this being a busy time, its well worth it. As a reminder, you are eligible to receive a loan advance of $1,000 per employee, up to $10,000, THIS ADVANCE DOES NOT NEED TO BE REPAID.
4/24/20 — Ag Producers Eligible for Economic Injury Disaster Loans (EIDL)
New legislation specifically states that agricultural producers are eligible for EIDL emergency advance payments up to $10,000. An additional $484 billion bill mainly aimed at replenishing funds meant to combat the economic downturn related to the Coronavirus has cleared both chambers of congress and is on its way to the President’s desk. Most of the funds ($320 billion) are aimed at replenishing the Paycheck Protection Program (PPP), however agriculture scored a small win with explicit language allowing us to participate in the EIDL program.
A great resource for learning more about EIDL is available from KCOE ISOM here.
Additionally, the SBA page on EIDL is available here, this is the page where the application is made:
EIDL Summary
- Unlike PPP, applications are made via the above link, NOT YOUR LENDER.
- Provides an emergency loan advance of up to $10,000 to businesses that are currently experiencing a temporary loss of revenue.
- Loan advance DOES NOT need to be repaid.
- Amounts over and above the advance will need to be repaid.
- Total loan amount is based on a business’s economic injury and is pro-rated per employee, up to $2 million.
- Available to any small business with less than 500 employees.
As with all programs, we strongly encourage you to consult your financial advisor prior to applying.
Still interested in applying for PPP? Don’t wait!
While the infusion of an additional $320 billion in the Paycheck Protection Program is a significant amount of funds. We have heard estimates that this funding is expected to last less than a week. Therefore, time is of the essence to apply for funds.
Kansas Funding in First PPP Round: In the first round of PPP Funding, SBA approved 26,245 loans in Kansas, totaling $4.28 billion in federal relief, most of which will be forgiven as long as the loan recipient keeps their employees, according to Senator Moran’s office.
Paycheck Protection Program
The Federal CARES Act created the Paycheck Protection Program (PPP). PPP provides forgivable loans for ANY small businesses (defined as less than 500 employees) designed to keep their workers on payroll. After much uncertainty, it was determined last Friday that farmers are eligible for this program regardless of farm size. Additionally, cooperatives, select non-profits, self-employed individuals and startups may qualify. Applications can be made via your local bank, Farm Credit, or credit union. It is strongly recommended that you consult with your financial advisor to ensure you have the proper documentation and understand the implications.
- An overview of the program can be found here.
- Guidance for lenders can be found here.
- Guidance for borrowers can be found here.
- A memo from the Farm Credit Administration can be found here.