SBA Cuts EIDL Loan Program Loan Amounts and Limits New Applications to Agricultural Businesses
May 11, 2020
In parallel with the Paycheck Protection Program (PPP) loan program, the SBA is offering businesses Economic Injury Disaster Loans (“EIDL”) to help businesses deal the fallout from the COVID-19 crisis. EIDL loans are structured as true loans and no amount is forgiven.
Initially, the SBA allowed borrowers to apply for up to $2M in loans under the EIDL program. Now with the second round of stimulus funding is nearly gone, CNBC reports on Thursday, May 7 that the SBA:
- has cut the maximum amount that can be borrowed under the EIDL program to $150,000;
- has limited new EIDL applications just to agricultural businesses starting on Monday, May 4; and
- will review applications for non-agricultural businesses only if those businesses applied for an EIDL loan before Wednesday, April 15, when the first round of stimulus funding ran out.
“Agricultural businesses” include businesses engaged in the legal production of food and fiber, ranching, and raising of livestock, aquaculture, and all other farming and agricultural related industries. 15 U.S.C. § 647(b)).
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