COVID-19 Update on Expanded PPP Funding
CARES Act’s Emergency Resources for Farm Businesses: Paycheck Protection Loan Program Funding Expanded
The recent CARES Act provided additional emergency funding through Small Business Administration (SBA) for businesses who are facing losses due to COVID-19. If you are a farm business, the most important program to be aware of right now is the Paycheck Protection Loan Program, which was authorized in the CARES Act.
It was widely reported on April 15 that the funding for the Paycheck Protection Program (PPP) had been fully obligated. However, additional funds have been appropriated and applications have reopened.
Farms that meet SBA small business thresholds are eligible to apply for this low interest, forgivable loan program. The other important feature of the PPP is that the loans are first come first served, until funding is expended. If this program seems like it would be of assistance to you, contact your bank as soon as possible to see if they are participating in this program. If they are not, Farm Credit is participating.
For more detail on the , the Food and Beverage Law Clinic at the Elisabeth Haub School of Law at Pace University has created an FAQ on funding programs available to farms.
Farms are also now eligible for Economic Injury Disaster Loans (EIDL), which provides an emergency grant of up to $10,000 for small businesses suffering a loss of revenue because of COVID-19. This is a valuable opportunity, especially for farms unable to receive a Paycheck Protection Program forgivable loan.
Additionally, the USDA announced the Coronavirus Food Assistance Program (CFAP). This relief program will allocate $16 billion in direct support to farmers and ranchers who have suffered economically in recent months. USDA will also partner with regional and local distributors to purchase $3 billion in fresh produce, dairy, and meat.