Updated: State and Federal round up of COVID-19 Financial Assistance Resources

By on November 23, 2020

FEDERAL PROGRAMS:

US Department of Agriculture – CFAP 2.0

Are you a farmer or rancher whose operation has been directly impacted by the coronavirus pandemic? USDA is implementing Coronavirus Food Assistance Program 2 for agricultural producers who continue to face market disruptions and associated costs because of COVID-19.

USDA’s Farm Service Agency will accept CFAP 2 applications from Sept. 21 through Dec. 11, 2020. Visit https://www.farmers.gov/cfap for additional information.

The Department of Treasury (Treasury) and Small Business Administration (SBA) released an interim final rule on the Paycheck Protection Program (PPP) . Agricultural producers are eligible to participate in the program and should reach out to their bankers and/or agricultural lenders to apply immediately. Loans will be provided on a first-come, first-served basis.

(New) American Farm Bureau and PPP Loans: https://www.fb.org/market-intel/update-ag-and-pppl

(New) Farm Credit Administration: https://ww3.fca.gov/readingrm/infomemo/Lists/InformationMemorandums/Attachments/263/PaycheckProtectionProgram.pdf

The USDA Coronavirus Resource Page has been updated to include FAQs on the Paycheck Protection Program (please scroll down to the appropriate tab). Since we have received this question numerous times, we want to highlight this section:

Q: Do H-2A or H-2B workers on my payroll count towards my eligibility and total possible loan amount?

A: Only employees with a principal place of residence in the U.S. count toward eligibility and calculation of the PPP loan amount.

USDA has said they will continue to update these FAQs in the coming days. Please know that we continue to communicate the needs of our farmers and agribusinesses to our federal partners.

Updated 4/24/20: Economic Injury Disaster Loans (EIDL).

SBA to make Economic Injury Disaster Loans Available to U.S. Agricultural Businesses Impacted by COVID-19 Pandemic.

The other SBA program that Congress has opened to all small farms and ag and food businesses, including nonprofits, is the Economic Injury Disaster Loans (EIDLs). This program was also addressed in the CARES Act, but SBA policy had previously prohibited most farms and farm-based businesses from applying. The legislation passed the week of April 24 explicitly makes agricultural operations eligible to apply for EIDLs.

How EIDL Works: Eligible operations, which now includes farms, that were in business as of Jan. 31, 2020 and that:

  • are unable to meet their financial obligations;
  • are unable pay ordinary and necessary operating expenses, OR;
  • have suffered a reduction in working capital due to COVID-19,
  • may apply for an emergency loan of up to $2 million.

Upon submitting an application, a business may request an emergency advance of up to $10,000, which does not have to be repaid, even if the loan application is denied, or the business chooses not to accept the loan once approved.

NOTE: Current SBA policy limits the amount of any advance to $1,000 per employee of the business as of Jan. 31, 2020.

EIDL advance funds may be used to:

  • pay sick leave for employees who are unable to work due to COVID-19;
  • maintain payroll;
  • cover increased costs of materials due to supply chain disruptions related to COVID-19;
  • make rent or mortgage payments;
  • pay utility bills;
  • pay existing debts; and
  • pay other bills that cannot be paid because of the COVID-19 disaster.

Advance Not Automatic: You must make sure to request the advance when filling out an EIDL application. A total of $20 billion has been appropriated for EIDL advances under the CARES Act. As this is a first-come, first-served program, you should apply right away if you are interested in participating in this program.

Other EIDL Terms: Congress has made the terms of full loans requested under the EIDL program easier. The maximum interest rate is 3.75 percent for for-profit businesses, and 2.75 percent for nonprofits. No collateral is required for loans of $25,000 or less, and no guarantee is required for loans of $200,000 or less.

The application may be submitted electronically or by mail. Although Congress authorized SBA to make EIDLs solely on the basis of an applicant’s credit score or other ‘alternative appropriate methods,’ so far SBA has required applicants to provide:

  • The applicant business’ tax returns for three prior years;
  • Personal tax returns for each principal owning 20 percent or more of the applicant business;
  • 2019 Federal Tax Returns (or an explanation if it is not available yet);
  • Personal Financial Statements (SBA Form 413) for the applicant business and each principal owning 20 percent or more;
  • The applicant business’ debt Schedule (SBA Form 2202); and
  • Confirmation whether the operation carries business interruption insurance.

The SBA determines final loan terms on a case-by-case basis, taking into account the actual economic injury your business has sustained and your ability to repay the loan and any other obligations. EIDL terms are up to 30 years.

Eligibility Note: In addition to having fewer than 500 employees, your business must also fall under the cap set by SBA for defining ‘small business’ in your sector. For farms, including livestock and aquaculture, that cap is $1 million in annual revenues. For timber and fishing operations the revenue cap is even higher, and for food manufacturing operations, there is no revenue cap to be eligible.

Where to Apply: Loans are made by the SBA directly. You can fill out the application online, or contact your local SBA offices:

STATE/REGIONAL PROGRAMS:

Updated 11/19: 2020 NC Pandemic Reimbursement Funding

We are excited to announce reimbursement funding for COVID-related food relief. Livingstone College will disburse these funds, which are made available through the NC Pandemic Recovery Office, and in partnership with the NC Department of Health and Human Services Office of Minority Health and The Conservation Fund’s Resourceful Communities program.

Please read the following requirements carefully.

Livingstone College is providing reimbursements for COVID-related food relief activities between March 1, 2020 and November 12, 2020 ranging from $2,500 to $40,000.

ELIGIBLE APPLICANTS INCLUDE:

  • NC-based 501(c)(3) nonprofit organizations, churches, municipalities, local agencies and tribal entities
  • Preference will be given to organizations led by and serving communities of color and/or low-income communities.
  • If your organization is not a 501(c)(3) nonprofit, you can still apply for funds in partnership with a nonprofit fiscal sponsor. Churches are not required to engage a fiscal sponsor but must meet 501(c)(3) nonprofit requirements set by the Internal Revenue Service. (https://www.irs.gov/pub/irs-pdf/p1828.pdf, Tax Guide for Churches & Religious Organizations).
  • Applicants must be located in and serving rural communities.

INELIGIBLE APPLICANTS:

  • Organizations in the following counties cannot apply: Buncombe, Durham, Forsyth, Guilford, Mecklenburg, New Hanover, Orange and Wake.
  • Statewide and regional agencies cannot apply.

REIMBURSEMENT for COVID-19 related food relief expenses between March 1, 2020 and Nov. 12, 2020:

Reimbursement Amount: $2,500-$40,000

· Eligible organizations must submit receipts/documentation, including proof of payment, for eligible expenses between March 1, 2020 through Nov. 12, 2020.

PLEASE NOTE: Documentation that demonstrates proof of payment might include receipts, pay stub, or bank statement (not just timesheets) for staff time, invoice plus canceled check, etc.

Expenses eligible for reimbursement include food purchases, distribution expenses (boxes, transportation costs for delivery, staff time), cold storage for COVID-related food relief, etc.

PLEASE NOTE: Construction and capital improvements are not eligible for reimbursement. Expenses paid for from Federal funding sources such as PPP or CARES ACT funding are not eligible for reimbursement.

Applications are due December 2, 2020 by 11:59 p.m. via the online application. Click here to complete: https://bit.ly/COVIDreimbursement

Please note: Applicants must submit documented expenses, an IRS 501(c)(3) determination letter (if applicable) and W-9 form with the online application. All documentation must be submitted with the application for reimbursement or will be deemed ineligible. Groups recommended for funding will be required to sign an agreement with Livingstone College by noon on December 16, 2020 or will not receive funding. If you have additional questions, email smallgrants@conservationfund.org

OTHER OPPORTUNITIES:

Facebook is offering $100 million in cash grants and ad credits for up to 30,000 eligible small businesses affected by COVID-19. Sign up for updates here.

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