By Elizabeth Higgins, Cornell Cooperative Extension
If you are an ag business that was unable to take advantage of the SBA EIDL Loan/Advance Program there is good news! The EIDL Advance/Loan portal will be re-opening shortly (today May 4th). The re-opening of the portal is for agricultural businesses that were previously ineligible for the program. New non-agricultural business applications will not be accepted. The portal will be opened for a limited period, and it is recommended that you apply as soon as possible. The link to the portal will be: http://www.sba.gov/Disaster
If you have already applied under the streamlined application (March 30th to program closure), there is no need to re-apply.
Agricultural Businesses Defined:
Agricultural businesses includes those businesses engaged in the production of food and fiber, ranching, and raising of livestock, aquaculture, and all other farming and agricultural related industries (as defined by section 18(b) of the Small Business Act (15 U.S.C. 647(b)). SBA is encouraging all eligible agricultural businesses with 500 or fewer employees wishing to apply to begin preparing their business financial information needed for their application.
If you are unfamiliar with the EIDL program, we included it in a recent fact sheet https://bit.ly/3eW0inq.
Here is a chart summarizing the differences between the EIDL and PPP:
| EIDL + Advance | PPP | |
| Max Loan Amount | $2 million | 2.5 x average monthly payroll, up to $10 million |
| Interest Rate | 3.75% (2.75% for non profits) | 1% |
| Maximum Forgivable Amount (aka Grant) | up to $10,000 – even if EIDL loan is not approved | The first 8 weeks of payroll immediately after you receive PPP funds + (rent, utilities, mortgage interest) BUT the total amount forgiven for non-payroll expenses is capped at 25% of the total amount forgiven. |
| Repayment Period | up to 30 years | 2 years |
| Allowable Uses | working capital | payroll, mortgage interest, rent, utilities |
| Who is the Lender? | SBA | commercial banks |
