To: R-CALF USA Members and Affiliates
From: CEO Bill Bullard
Date: April 23, 2020
Subject: New CARES Act Loans Available for Farmers and Ranchers
Background: Ranchers and Farmers are finally allowed access to the Small Business Administration's (SBA) Emergency Injury Disaster Loan (EIDL) Program. Right now, the Paycheck Protection Program seems to be getting most of the media's attention. But many small business owners appreciate the flexibility of these SBA-directed loans. Unfortunately, CARES Act 1.0 unintentionally excluded ranchers and farmers from accessing the EIDL loans.
The new CARES Act 2.0 includes language to ensure that farmers and ranchers are eligible for the EIDL program, including grants. Agricultural businesses with less than 500 employees can now apply for low-interest loans through EIDL. They can also qualify for a $10,000 emergency grant administered by the SBA. These emergency grants are limited to $1,000 per employee, for up to a maximum of $10,000. The SBA administers applications for the EIDL program.
The Coalition of a Prosperous America (CPA), of which R-CALF USA is a board member, highly recommends that our farm and ranch members explore this program, as well as the Paycheck Protection Program. Even though Congress has passed an increase in funding, there is no predicting how long the funds will last. CPA can help you stay on top of this, in order to take advantage of these loans.