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COVID-19 Guidance for Farms & Communities
Resources for Farms & Communities

Note: We are working to provide the most accurate information we have to the question below. If you have information that should be added or see anything that needs to be corrected, please reach out to us at info@kansasuralcenter.org.

The CARES Act provisions include the Payroll Protection Program (PPP) and the Economic Injury Disaster Loan (EIDL) program.   The Paycheck Protection Program is administered by the US department of Treasury.  It provides small businesses (less than 500 employees) with funds to pay up to 8 weeks of payroll costs including benefits. Up to 25% of funds can also be used to pay interest on mortgages, rent, and utilities.  The loan amounts will be forgiven as long as: · The loan proceeds are used to cover payroll costs, and most mortgage interest, rent, and utility costs over the 8 week period after the loan is made; and · Employee and compensation levels are maintained.   The interest rate on PPP loans is 0.5 percent, and loan payments for any non-forgivable costs will be deferred for 6 months. The loan term is up to two years. Application for this program will begin April 3, 2020.  For more information on the PPP visit:
US Department of Treasury
U.S. Small Business Administration

The EIDL program is a loan and grant program administered by the U.S. Small Business Administration.  The CARES Act provides $10 billion to expand SBA’s Economic Injury Disaster Loan (EIDL) program by adding emergency grants of up to $10,000 that do not need to be repaid.  The loan and emergency grant can be used to pay fixed debts, payroll, accounts payable and other bills that a business cannot pay because of the ongoing COVID-19 crisis. To find out if you qualify for a loan, visit https://covid19relief.sba.gov/#/. 
U.S. Small Business Administration 

Are farmers and ranchers eligible to apply for these?  There is still a lot of confusion around this. Lenders, state SBAs, and food and farm organizations are currently trying to navigate clarity on eligibility for farmers.   

It is currently understood that the PPP does include farmers. Farmers must have fewer than 500 employees and less than $1 million revenue. SBA also requires that farms and ag businesses first explore FSA loan programs. Farmers will want to evaluate all options available to them to see if PPP loans make the most sense for their operations. For example, small farms who have very few employees and associated payroll may not receive significant benefit from PPP loans. 

Agribusinesses are now eligible to apply for EIDLs under the expanded authority provided by the CARES Act.  To apply, visit: https://www.sba.gov/page/disaster-loan-applications#section-header-0

Farm Commons hosted a webinar explaining the nuances of the EIDL program and why farms were not included in the first round of SBA funding. View recorded webinar here.

Economic Injury Disaster Loans for Farmers/Ranchers Affected by COVID-19 – Farm Commons webinar updated April, 28

Coping with COVID — Forms Needed to Apply for Disaster Assistance – SBDC video

For more details on how these two programs work and information about farmer eligibility check out NSACs latest blog post:
CONFUSION REMAINS OVER SBA ASSISTANCE FOR FARMERS

For updates check back here or follow the National Sustainable Agriculture Coalition.