Agricultural businesses are now eligible to apply for the SBA EIDL Loans

If you own an agricultural business that has been impacted by the COVID-19 pandemic, consider applying for the EIDL (Economic Injury Disaster Loan and Advance). The SBA opened up a special application period for agricultural businesses on May 4th, 2020.

To apply now, go here:

To qualify for this special application period, you must:

  1. Be an agricultural business engaged in the legal production of food and fiber, ranching, and raising of livestock, aquaculture, and all other farming and agricultural related industries.
  2. Have 500 or fewer employees.

The EIDL program is currently working in two phases:

  1. Phase 1: is a streamlined application with a loan advance of up to $10,000. The SBA is currently advancing businesses $1,000 per employee, up to 10 employees. If your agricultural business does not have any employees, the SBA considers you to be self-employed and you would likely receive a $1,000 advance. Current guidance indicates the advance does not need to be repaid.
  2. Phase 2: A follow up, more thorough application for larger loan amounts to provide businesses with additional working capital. Loan terms can be for up to 30 years at 3.75% interest.

We are committed to using our tax, accounting and payroll expertise to help you, your business, our neighbors and our broader community navigate the COVID-19 pandemic. One of the ways we can help is to connect your business to the disaster relief currently available.

As always, if you have questions or just need a little bit of help filling out these forms accurately, please contact BakerStarrett your Iowa and Midwest Farm CPA experts.

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