From the Clemson Extension Agribusiness Team.

The Small Business Administration (SBA) has been administering two particular pots of money that businesses have been able to access during the COVID-19 pandemic. These pots of money were first funded through the Coronavirus Aid, Relief, and Economic Security Act (CARES) and are called the Paycheck Protection Program (PPP) and Emergency Injury Disaster Loan (EIDL).

Originally with the exception of a small carve-out, most of agriculture was not eligible for the EIDL but as long as they met specific criteria they were able to access the PPP. During this time, additional rules and guidance had been released and updated multiple times which has provided additional information as well as confusion and created more questions than may have been answered. Then the money ran out. Over the past week, Congress has been working on an additional appropriation for these two funds through the Paycheck Protection Program and Health Care Enhancement Act (PPPHCEA). On Tuesday, April 21, 2020, the U.S. Senate passed the amendment and bill and by April 22, 2020, it was sent to the U.S. House. The U.S. House passed the bill on Thursday, April 23, 2020, and sent it on for the President’s signature. The President is expected to sign it on Friday, April 24, 2020.

The Paycheck Protection Program and Health Care Enhancement Act appropriated additional funds as follows:

•  $310 billion to the Paycheck Protection Program:
  • As part of the $310 billion, there is a carve-out that created a set-aside for $30 billion of the funds to go directly through “insured depository institutions, credit unions, and community financial institutions” for “community financial institutions, small insured depository institutions, and credit unions”. This means it includes community development financial institutions, and credit unions Institutions that have consolidated assets of less than $10 billion will have the potential to access and lend the $30 billion that has been appropriated for that group of financial institutions.
  • $280 billion of the $310 billion that was appropriated can be accessed through institutions that can service SBA loans and programs as was done through the Coronavirus Aid, Relief, and Economic Security Act (CARES).

• $10 billion to the Emergency Injury Disaster Loan:
  o Producers of agricultural enterprises are specifically stated as eligible for EIDL if they meet the definition of small business.

• The bill also provides funds to be used for health and human services purposes:
  • $75 billion to be used by eligible healthcare providers for healthcare-related expenses or lost revenues due to COVID-19.
  • $25 billion to prevent, prepare for and respond to COVID-19. This allows for research and development, validation, manufacturing, purchasing, and administering of COVID-19 testing.

If you have an interest in being able to access any funds to assist your farm or business that has been affected due to COVID-19 related reasons we recommend you check with your local lending institutions or the Small Business Administration (SBA) NOW! It is expected that the funding that has been appropriated will not last very long.

SBA Link to download pdf of Participating Lenders for PPP:
SBA Link to apply for EIDL

For further information and links about the loans and other COVID-19 related issues please visit the Clemson Extension Agribusiness Team COVID-19 Resources website.

Further information on general agricultural business-related information and farm management can be found at the Clemson Extension Agribusiness Team’s webpage.