The Small Business Administration (SBA) has enacted legislation to provide additional funding through its pandemic assistance programs to help farmers, ranchers, and other agricultural businesses. As defined by Section 18(b) of the Small Business Act, agricultural businesses include food, fiber, ranching, raising livestock, aquaculture, and all other agricultural and farming related industries.
In order to be eligible for funding through either the Economic Injury Disaster Loan (EIDL) portal or Paycheck Protection Program, agricultural businesses may only have 500 or less employees. An EIDL can provide up to $10,000 in emergency grants that do not have to be repaid. In addition, the Paycheck Protection Program may provide up to $2,000,000 in low-interest loans for operational costs, which may be partially or completely forgiven depending on its use.
Farmers have been especially hard hit during the ongoing pandemic. As food orders from businesses that the farms regularly supply came to a screeching halt, farmers were left with an abundance of harvested crops, and no compensation to be had. Many have been forced to cut payroll and other expenses just to make ends meet during what should have been their most productive time of year.
The American Farm Bureau Federation played an integral part in securing funding for our nation’s farmers, ranchers, and agricultural businesses to stay afloat. If you have any questions or uncertainties about obtaining this funding, or simply feel that you may need expert guidance in completing applications, do not hesitate to consult with a local agricultural attorney who can help ensure your application is complete, and expedite processing.