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Resources for Agricultural Producers Related to COVID-19 Relief

The Small Business Administration (SBA) is administering a $349 billion program to support payroll in response to the coronavirus.

Paycheck Protection Program (PPP)

 Agricultural producers, farmers, and ranchers with 500 or fewer employees are eligible.

 Sole proprietors are eligible if the business was in operation as of 2/15/2020.

 Employees must have a principal place of residence in the U.S.

 Loans are forgivable if at least 75% of the loan is used for payroll purposes.

 Apply through an approved SBA lender. More information is available from the SBA at https://www.sba.gov/fundingprograms/loans/coronavirus-relief-options/paycheck-protection-program-ppp. The USDA has a Frequently Asked Questions section focused on agriculture at https://www.usda.gov/coronavirus.

Economic Injury Disaster Loan (EIDL)

 Agricultural producers, farmers, and ranchers are not eligible for this program, however, agricultural cooperatives, aquaculture enterprises, and nurseries are eligible.

 An EIDL advance of up to $10,000 is available and may be forgiven.

 Businesses with more than 500 employees must meet certain industry size standards.

The UGA Small Business Development Center has a series of webinars and related material available at https://www.georgiasbdc.org/sba-economic-injury-disaster-loan/. The United States Department of Agriculture (USDA) has a program to help crop producers receive loans to allow more time for marketing their commodities. Marketing Assistance Loans (MAL)

 Marketing assistance loans for eligible crops have been extended from the usual 9 months to 12 months.

 Open loans must have a maturity date of March 31, 2020 or later and include new crop year (2019 and 2020) loans that are requested by September 30.

 Eligible crops include upland cotton, peanuts, corn, soybeans, wheat, and other row crops typically eligible for Title I farm bill programs.

More information is available at the USDA FSA website https://www.fsa.usda.gov/programsand-services/price-support/commodity-loans/.

Author: Adam N. Rabinowitz (adam.rabinowitz@uga.edu or 229-386-3512) is an Assistant Professor and Extension Economist with the Department of Agricultural and Applied Economics at the University of Georgia.

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