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: https://covid19relief.sba.gov/#/
To qualify for this special application period, you must:
- 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.
- Have 500 or fewer employees.
The EIDL program is currently working in two phases:
- 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.
- 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.