May 20, 2020
USDA Coronavirus Food Assistance Program (CFAP)
$16 billion in federal support is available to producers who've experienced losses due to the COVID-19 pandemic. Funding has been approved, and applications will be accepted beginning May 26, 2020. The USDA encourages producers to learn more now and prepare to apply directly through the Farm Service Agency.
The informational site includes a recorded webinar and helpful questions and answers. Watch the CFAP site for application dates and deadlines.
Economic Injury Disaster Loans (EIDL)
IN ADDITION TO THE PPP loan program, the SBA announced that farmers, ranchers and ag businesses qualify for Economic Injury Disaster Loans. The application portal opened in early May. Apply directly with SBA for these loans.
Paycheck Protection Program (PPP) – FARMERS QUALIFY
Congress approved a second wave of PPP funding. The additional $310 billion for the Payroll Protection Program (Farm Credit, along with fellow SBA-approved lenders, have access to $250 billion of these funds) became available on Monday, April 27 and continues to be available (as of 5-14-20).
Farmers qualify and we are making PPP loans for existing customers. Contact you loan officer soon. Phone numbers can be found under the "LOCATIONS" tab on the home page of this website. It is anticipated that these additional funds will be exhausted quickly.
The Treasury has issued guidance on calculating eligible PPP loan amounts for Schedule F filers. See page 3, question #3. https://home.treasury.gov/system/files/136/How-to-Calculate-Loan-Amounts.pdf
What is the Paycheck Protection Program (PPP) offered through the Small Business Administration (SBA)?
- It's available to small businesses with fewer than 500 employees and meant to assist businesses in continuing to meet payroll e and for use in paying rent, utilities, interest on mortgages, etc.
- Borrowers may access a loan for up to 2.5 X their average monthly payroll costs, not to exceed $10 million. Covered payroll expenses include salary, wages and cash tips up to an annual rate of $100,000 per employee plus health insurance, retirement contributions and covered leave.
- Loans are for two years, with a 1% interest rate.
- Payments will be deferred for six months.
- No collateral or personal guarantees are required.
- No fees will be charged by the SBA, or lenders.
- Loans will be forgiven if the funds are used for payroll costs, interest on mortgages, rent and utilities provided at least 75% of the forgiven amount is used for payroll.
- Forgiveness is based on the employer maintaining or quickly rehiring employees and maintaining salary levels. Forgiveness will be reduced if full-time headcount declines or if salaries and wages decrease.
- Reference the SBA's Reference Guide for Applicants and Lenders for complete details.
How do I apply?
- Contact your loan officer or local branch office to begin the process.
Documentation to support application:
Your loan officer can detail the documentation needed by ag producers. Also, see information newly released by the Treasury regarding Schedule F filers. https://home.treasury.gov/system/files/136/How-to-Calculate-Loan-Amounts.pdf
- Documentation that demonstrates they had employees for whom they paid salaries and payroll taxes on February 15, 2020.
- Payroll documentation confirming the amount of average monthly payroll costs for calendar year 2019.
- Applicants must provide documentation to the lender supporting how the loan amount was calculated in accordance with the PPP Rule and the CARES Act.
Where can I learn more?
Farm Credit's Timeline with Providing PPP Loans:
March 27, 2020
The PPP was enacted by Congress as part of the $2-trillon-dollar CARES Act as an economic rescue package in response to the Covid-19 crisis.
$349 billion was initially appropriated, to be administered by the Small Business Administration (SBA) through local, approved lenders.
March 28, 2020
Farm Credit was named as an approved lender for the PPP loan program.
Farm Credit of Western Arkansas immediately began working with the SBA to be set up as a lender on the SBA portal. In spite of being in constant contact with SBA, Farm Credit had no control over the timing of the approval process.
April 11, 2020
Farm Credit of Western Arkansas received SBA credentials as a lender and continued to wait for formal SBA site access.
April 14, 2020
Farm Credit of Western Arkansas received complete access to the SBA site and began processing customer PPP loan requests. At this time, we are able to assist existing members only.
April 16, 2020
The initial $349 billion in PPP funds were exhausted.
April 16 - present
Farm Credit continues to identify the best ways to assist members with securing PPP loans. PPP loan requests are being accepted in the event Congress makes additional funds available.
April 27 – until PPP funds are exhausted
Farm Credit will process PPP loan requests as soon as the SBA PPP loan site is available at 10:30 AM (Eastern time), until the second appropriation of $250 billion is exhausted.
May 4 – Addition of EIDL program
The SBA announced that farmers, ranchers and ag businesses qualify for EIDL loans, apply directly via SBA's website. https://www.sba.gov/funding-programs/disaster-assistance
Publicized the USDA's webinar on the Cononavirus Food Assistance Program (CFAP) via social media and posted links to this site on May 14.