As many of you may know, there was a $2.2 trillion economic stimulus package signed into law to delay the economic impacts incurred as a result of the coronavirus pandemic. Recently, there has been a discussion of another economic stimulus package: As farmers, registered as legal hemp growers, we are entitled to agricultural emergency loan assistance and other small business aid.
If you have not recently inquired about the benefits that are accessible to small businesses and farmers, here is a link for more information and a fillable application where you can apply for Economic Injury Disaster Loans and Loan Advances.
All small business owners are eligible to apply for an advance of up to $10,000, which can be used towards things like pay-roll support. There is an additional disaster loan program that allows working capital loans of up to $2 million to help overcome a temporary loss of revenue due to these unforeseen circumstances.
Successful applicant’s approvals will be responded to within three days, and the loan advance will not have to be repaid if used towards allowed expenses.
Small Business Administration Debt Relief
Disaster Loan Assistance https://covid19relief.sba.gov/#/
The 7(a) loan program is the SBA’s primary program for providing financial assistance to small businesses. The relief package covers six months of principal and interest on new 7(a) loans issued before Sept. 27, 2020. Additionally, the Express Bridge Loans allows small companies who currently engage with the SBA Express Lender to access up to $25,000 with less paperwork and faster turnaround. These funds can be used while applying for the SBA Economic Injury Disaster loan, to be repaid in full, or with the funds from the Economic Injury Disaster Loan. All of the loans can be found through your local SBA office.
Farm Agency Loans
Hemp producers can continue to apply for the U.S. Department of Agriculture’s Farm Service Agency loans that are “critical for annual operating and family living expenses,” who are currently relaxing the loan-making process, making it more accessible and easier to obtain.
Are legal hemp growers considered “critical infrastructure workers”?
According to the USDA, agriculture accounts for roughly one-fifth of our nation’s economy and is listed as one of the 16 critical infrastructure sectors, which legal hemp growers are considered part of this critical infrastructure due to our inclusion in the Farm Bill.
Our friends and partners at Compass East have put together a great resource for your utilization. Please visit them at https://compasseast.com/ppp-loan-calculator/