Small Business Administration Programs
SBA Paycheck Protection Program (PPP)
If you've received an SBA PPP loan this year, please review our resources for the loan forgiveness process.
How do I apply for SBA PPP loan forgiveness?
SBA released guidelines for PPP loan recipients to apply for forgiveness through their lender.
To help you complete the required next steps for forgiveness, AgChoice developed the following tools.
- AgChoice SBA PPP loan forgiveness checklist for submission requirements.
- AgChoice SBA PPP loan forgiveness calculator. New calculator coming August 14.
- AgChoice SBA PPP loan forgiveness question and answer.
We also encourage you to view this recorded video from our staff to help you understand the process.
Loan Forgiveness Application and Instructions
EZ Loan Forgiveness Application and Instructions
I need a PPP loan. How do I determine the size of a loan I’m eligible for?
AgChoice has prepared a few resources to help you answer this question. Check out the links below. Included are a document checklist, detailing information you will need to collect, along with an interactive calculator.
SBA PPP Resources:
Who do I contact if I’m interested in applying for a SBA PPP loan through AgChoice?
Contact your loan officer or call us at 800-998-5557 to indicate your interest.
SBA Emergency Income Disaster Loan (EIDL)
EIDL is open to production agriculture and offers loans up to $2 million to cover working capital at a rate of 3.75% for businesses on a 30-year term. Payments on EIDL loans are deferred for one year and eligible applicants may also receive an emergency grant of up to $10,000 within three days of application. Emergency grants do not need to be repaid, and applicants do not need to have an approved EIDL loan to receive the grant.
While EIDL loans seem attractive, they might not be a fit for every farm. Before signing for an EIDL loan, first talk with your lender or financial adviser.
Items that your farm should consider:
- EIDL paperwork includes language about needing to obtain SBA concurrence before seeking a future advance on a senior secured credit line. It is unclear to what extent this will be enforced, but it may cause issues for farms if they have credit lines with other lenders besides SBA.
- Pledging collateral to SBA may impact your current lender’s ability to lend additional funds in the future.
- SBA consent is needed prior to any ownership transfers, so if your farm is planning an upcoming farm transition it may be impeded.
- There are other impacts on EIDL if your farm received a SBA Paycheck Protection Program (PPP) loan.The amount of your EIDL grant would be subtracted from the PPP forgiveness amount. You will also not be able to use EIDL proceeds for payroll, mortgage interest, utilities or rent since that is the intended purpose for PPP.
SBA EIDL is a program that may be useful for some farms, but there are implications that should be considered first. Remember to consult with your lender or financial advisor to discuss if the program fits with your individual situation.