The National Pork Producers Council (NPPC) joined 30 agriculture organizations yesterday in urging the U.S. Small Business Administration (SBA) to ensure agricultural business can participate in the economic disaster loan program included in the CARES Act.
Earlier this week, SBA posted information on its Economic Injury Disaster Loan (EIDL) program website stating applicants do not qualify for loans if they are an agricultural enterprise (e.g. farm). However, the CARES Act, signed into law last month, does not specifically exclude agriculture from this program. Congress intended for all business fewer than 500 employees to participate, NPPC and the agriculture organizations wrote yesterday to SBA Administrator Jovita Carranza.
“Agricultural producers and businesses are critical elements of this nation’s economy and food system. Prior to COVID-19, farmers and ranchers had already experienced a drastic 24-percent decline in net farm income from highs experienced just six years ago. With the further downturn in the economy, agricultural businesses are at risk of closure and may be required to lay off employees,” the letter explained. “Many agricultural producers need access to this critical source of financing to help preserve their businesses and avoid further disruptions to our economy and food systems,” the letter added.
Click here to see more...