Source: FARM DOC DAILY, UNIV. OF ILLINOIS, 5/12/20


The most recent legislation enacted by Congress for relief during the Covid-19 pandemic has clarified that farmers are eligible for a low interest, non-forgivable loan of up to $150,000. Farmers and other agricultural businesses who apply for the loan can also qualify for an emergency advance in addition to the loan. The emergency advance is equal to $1,000 per employee, for up to a maximum of $10,000.  A self-employed farmer with no employees is eligible for a $1,000 emergency advance.  Although the traditional full loan amount is not forgivable and must be repaid over a term of up to thirty years, the emergency advance portion does not have to be repaid if used on eligible expenses.  Currently, the Small Business Association (SBA) — the agency overseeing the loan program —has stated that it will begin accepting new applications on a limited basis for U.S. agricultural businesses only (Economic Injury Disaster Loan program).  Interested applicants should submit an application online with the SBA. Although there is no posted deadline for agriculture business applications, program funding is limited and issued on a first-in-first-out basis.

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