More Coronavirus updates
Following our post last week on how farms and ranches can take advantage of the Paycheck Protection Program through the Small Business Administration in response to the COVID-19 pandemic, we heard from several experts that we should be sure to also inform people of the Economic Injury Disaster Loan (EIDL) Advance option.
Importantly, if you do not take a salary from your small farm or ranch operation and do not have employees, you may not be eligible for the Paycheck Protection Program, but you can still apply for the EIDL. If your production business is established separate from a direct-to-consumer or product marketing business, both enterprises may be eligible for either program.
You can apply for both an EIDL advance grant and the paycheck protection program for your farm or ranch, and if you receive a EIDL, that amount will be deducted from your PPP.
What is the EIDL program?
The EIDL program existed before COVID-19, and was available to businesses to help with payroll and recovery related to federally-designated disasters. Currently, however, because of the president’s declaration of a national emergency, essentially any legal small business in the country is eligible. Additionally, the CARES Act authorized the SBA to administer short-term, rapid-turnaround grants of up to $10,000 to mitigate immediate, temporary harm from COVID-19 to small businesses.
The SBA currently advises that “This advance will provide economic relief to businesses that are currently experiencing a temporary loss of revenue. Funds will be made available following a successful application. This loan advance will not have to be repaid.“
Will it really be forgiven?
Further clarification, from Forbes, specifies that “If you need it, you can ask for an emergency grant advance of up to $10,000 – the SBA says that you can get these in as little as three days. The loan advance will be forgiven if it is spent on paid leave, maintaining payroll, mortgage, or lease payments.”
To apply for an EIDL advance, click here: https://covid19relief.sba.gov/#/
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