The Small Business Administration received additional funding for the Economic Injury Disaster Loan (EIDL) with the signing of the bill today. Additional information can be found here.

At this time the application process is not available, but we wanted you to be informed of the opportunity and apply as soon as it is available. The first round of funds were disbursed quickly therefore getting your application in early will be vitally important on your opportunity to receive funding.  As you can imagine the SBA has been somewhat overwhelmed and it is my understanding that funds from the first round have not been disbursed as of today.  Therefore, do not expect a quick turn around with your application.   

The initial step is very quick and simple to complete with them only requesting basic information, it takes less than 10 minutes.  At whatever point your application has been received/processed they will assign you a SBA Transaction number and will fund an initial loan of $10,000 while they are processing your loan request.  You will then be assigned an SBA loan officer to process your loan request.  

At this point they are struggling to process the applications and I would anticipate that to continue unless changes are made to their process.  It was stressed to me that if you get to the point of the SBA processing your application, they will request additional information and your timely response is imperative, otherwise your application will be moved back to back of the line.  

The EIDL loan is an unsecured loan to be used for business expenses up to $2 million.  They are hinting that these loans may be forgiven at some point in the future.  This is not formally stated at this point so, I would provision for repayment under the terms of your individual SBA agreement. 

Additional CCC funds will become available in July.

The Coronavirus Food Assistance Program is partially funded by the Commodity Credit Corporation. The CCC will be receiving another $14 billion in July and those funds could be available for more coronavirus relief. 

“I was able to appropriate about $23.5 billion and this current package is $19 billion. Some of the money doesn’t hit the account until July,” said John Hoeven, chair, Senate Agriculture Appropriations. “This is important and a good chunk of the money. I told the USDA to use as much of the CCC funding and the funding from the CARES Act that we could.” 

In addition to the coronavirus aid package, Hoeven also said quality loss adjustments are coming for farmers and ranchers likely in June.

Additional informational information can be found at as it becomes available.