On April 1, UBS Financial Advisors issued a comprehensive summary of the COVID-19 relief programs contained in the recently-enacted CARES Act stimulus package. The programs are broken down into four buckets: Economic Injury Disaster Loans (EIDL), Paycheck Protection Program (PPP), Loans for Larger Businesses, and Tax Credits and Deferrals.
Small businesses in the WG membership, companies with up to 500 employees, are currently eligible for the Paycheck Protection Program, which provides forgivable loans meant to cover the next 8 weeks of payroll costs, including benefits. Funds can also be used to pay interest on mortgages, rent and utilities. In order for the loan to be forgiven, payroll levels and wages must be maintained through June 30, 2020. The covered period begins February 15, 2020 and ends on June 30, 2020.
Click here to access more information on the U.S. Department of Treasury website, including the application.
As of April 2, agricultural operations are not eligible for the Economic Injury Disaster Loan Program, which is a low-interest (3.75%), non-forgivable loan and different than the Paycheck Protection Program. This small business program provides loans up to $2 million and covers accounts payable, fixed debts, payroll and other bills due to COVID-19.
Farm groups and House lawmakers are now pushing the Small Business Administration to include agricultural operations in the EIDL program. We will alert our members if the EIDL eligibility criteria changes.