The Small Business Administration (“SBA”) announced this week that the EIDL program is accepting applications again but on a limited basis.
The Paycheck Protection Program and Health Care Enhancement Act signed into law April 24, 2020, provided additional funding ($10 Billion) for the SBA to loan money under the EIDL program as well as emergency advances of up to $10,000 to applicants.
Included in the amendment were changes designed to expand the eligibility for EIDL loans and advances to include agricultural businesses engaged in the legal production of food and fiber, ranching, raising livestock, aquaculture, and all other farming and agricultural related activities.
The SBA is accepting applications only for agricultural businesses at this time. Such businesses must still meet the small business qualifications (less than 500 employees or otherwise qualifying under SBA size calculations) and now must also be exclusively a small agricultural enterprise as defined to apply.
Those agricultural businesses that have already filed will have their applications moved forward by the SBA for immediate processing and do not have to re-apply.
EIDL applications for businesses that are not agricultural and which were previously filed but not funded at the time appropriations ran out will be processed on a first-in, first-out basis. The tenor of the SBA announcement suggests that such non-agricultural enterprises with pending applications will only have them processed once the backlog of agricultural applications are handled.
There is no indication yet on whether or not there will be funds available after all agricultural businesses apply or even if there will be enough funding for all applicants.