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1 1 (May 5, 2020)

handle is hein.crs/govdadq0001 and id is 1 raw text is: i% 'N\ r COVID-19-Related Loan Assistance for Agricultural Enterprises Updated May 5, 2020 The Coronavirus Aid, Relief, and Economic Security Act (CARES Act; P.L. 116-136) created the Small Business Administration's (SBA's) Paycheck Protection Program (PPP) and Emergency Ecotiomic Ilj ury Disaster Lowi (EIDL) grants to provide short-term, economic relief to certain small businesses and nonprofits. For more information on SBA-related emergency relief provisions, see CRS Report R46284, COVID-19 ReliefAssistance to Small Businesses: Issues and Policy Options, by Robert Jay Dilger, Bruce R. Lindsay, and Sean Lowry. Important note: The SBA started accepting PPP and Emergency EIDL grant applications on April 3, 2020. The SBA stopped accepting new PPP and Emergency EIDL grant applications on April 16, because funding provided for these programs by the CARES Act was either exhausted (PPP) or nearing exhaustion (Emergency EIDL grants). The SBA resumed accepting PPP applications on April 27, following enactment of the Paycheck Protection Program and Health Care Enhancement Act (P.L. 116- 139). The act provided an additional $321.335 billion for the PPP and $10 billion for Emergency EIDL grants. The SBA continued to process Emergency EIDL grant applications submitted prior to April 16. However, because of the large number of Emergency EIDL grant applications submitted, the SBA did not accept new Emergency EIDL grant applications until May 4, 2020, and then only on a limited basis to accommodate agricultural enterprises. P.L. 116-139 included a provision (Division A, § 101) to temporarily permit agricultural enterprises, as defined by Section 18(b) of the Small Business Act (15 U.S.C. §647(b)), with not more than 500 employees to receive Emergency EIDL grants and EIDLs through December 31, 2020. This Insight will be updated to reflect any legislative changes affecting these programs. PPP Loan Terms and Eligibility PPP loans feature a two-year term at 1% interest, the waiver of the SBA's up-front loan guarantee and annual servicing fees, relaxed underwriting requirements, deferred payments for six months (interest does accrue), and loan forgiveness of up to 100% of the loan's principal amount under specified conditions Congressional Research Service https://crsreports.congress.gov IN11357 CRS NSMGHT Prepared for Members aisd C o m m itte esn o ff C oo r- _rr ss s ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------