New SBA aid program includes loan for farmers
“We are pleased that Congress is ordering the Small Business Administration to allow farm businesses to apply for loans in the event of an economic disaster,” said Brian Kuehl, director of government and public affairs for KCoe Isom, a national accounting firm. and agricultural advice. “SBA was wrong to have excluded agriculture in the first place. Farmers are suffering and must have access to emergency grants of $ 10,000 and low interest loans under this program. We wrote to the SBA three weeks ago asking them to change course, and they refused. It is good that Congress is stepping in to resolve this problem. “
This provision means that farming businesses can now apply for low-interest loans through EIDL and can also qualify for the emergency grants of $ 10,000 administered by the SBA, Kuehl said.
To be eligible, farming businesses will need to show that they have been affected by the economic downturn caused by the coronavirus. Emergency grants are limited to $ 1,000 per employee to a maximum of $ 10,000. Applications for the program are administered by the Small Business Administration.
Producers signed a record 1.77 million contracts for USDA’s Agricultural Risk Coverage (ARC) and Price Loss Coverage (PLC) programs for the 2019 crop year, more than 107% of the total contracts signed versus a five-year average, USDA said Tuesday.
The USDA also reminded growers that June 30 is the deadline to register with ARC and PLC for the 2020 crop year.
“Producers have experienced low commodity prices, an unstable business environment and catastrophic natural disasters for several years,” said Richard Fordyce, administrator of the USDA’s Farm Service Agency (FSA). “Farmers seeking to mitigate these risks recognize that ARC and PLC provide the financial protections they need to deal with substantial declines in crop prices or income.”
Producers interested in registering for 2020 should contact their FSA county office. Producers must register by June 30 and complete their one-time PLC payment returns update by September 30.
The FSA attributed the significant participation in the 2019 crop year ARC and PLC programs to increased producer interest in the 2018 Farm Bill programs and an increase in eligible farms due to the sale and purchase of farms. and new opportunities for beginning farmers and military veterans. with farms having 10 base acres or less. Registrations for 2019 closed on March 16.
USDA service centers, including FSA county offices, are only open by phone and fieldwork will continue with appropriate social distancing. While program delivery staff continue to come to the office, they will work with producers over the phone and use online tools where possible. All visitors to the service center wishing to do business with the FSA, the natural resource conservation service or any agency of the service center are required to call their service center to make a telephone appointment, said the ‘USDA.
Jerry Hagstrom can be reached at [email protected]
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