Funds available for the Paycheck Protection Program and the Economic Injury Disaster Loan Program ran out shortly after Congress passed the CARES Act, as the Small Business Administration was swamped with applications. Fortunately, President Trump and Congress have reached an agreement to provide more funding for these programs ($310 billion for the PPP and $10 billion for EIDL emergency grants). The Senate passed the bill on Tuesday, April 21st, and the House is expected to follow suit this week. As before, NAGA strongly encourages interested businesses to move quickly to apply. Like the first batch, this refill of those program funds will not last long.
In addition, many gamebird business owners have wondered if they are eligible to apply for Economic Injury Disaster Loans or emergency grants through the Small Business Administration (SBA). In normal circumstances, the answer would be no. NAGA has been advocating in support of efforts by leading members of Congressional small business committees to make these programs available to agricultural businesses for programs provided as a response to COVID-19. We’ve just learned from Senator Marco Rubio, who chairs the Senate Small Business and Entrepreneurship Committee, that the latest relief bill includes clarification that agricultural businesses are eligible.
EIDL loans are expected to have an interest rate in the range of 3.5%. Businesses may be eligible for a $10,000 emergency grant through this program as well. It should be understood that any business receiving a grant under EIDL will lose that same amount from any loan forgiveness associated with a loan provided through the Paycheck Protection Program. Currently the SBA is not accepting new EIDL applications, but that is expected to change as soon as the President signs the new relief bill.