EIDL and PPP Funding Passes
Ag Producers Eligible for Economic Injury Disaster Loans (EIDL)
4/24/20–New legislation 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:
- 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.
Published April 24, 2020