Source: FARM BUREAU, 4/2/20

Last week we released a Market Intel, What’s in the CARES Act for Food and Agriculture, outlining the provisions of the Coronavirus Aid, Relief, Economic Security Act specifically intended for agriculture. This Market Intel delves into provisions of the CARES Act that, depending on how some provisions are interpreted by the Small Business Administration, could potentially provide a lifeline for ag producers.  There are three main SBA programs that are of the most interest to agricultural producers: The Paycheck Protection Program Loan (PPPL), Economic Injury Disaster Loan (EIDL) and the Emergency EIDL grants.

Signed into law on March 27, the CARES Act provides more than $2 trillion in economic stimulus. It also launched a host of questions about how quickly government agencies could write the rules for the programs included in the legislation. A significant amount of that stimulus was directed toward the SBA, which will oversee $350 billion in dedicated funding to prevent layoffs and business closures while workers have to stay home during the COVID-19 outbreak. SBA has been working feverishly to provide guidance on these programs, but understandably, we’re still awaiting many important details. We know the most about the Paycheck Protection Program Forgivable Loans, which will be the focus of this article. Once additional details are released about the other programs and how they treat production agriculture, we will follow up with Market Intel articles.

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