About | HeinOnline Law Journal Library | HeinOnline Law Journal Library | HeinOnline

LOG IN
LOG IN


1 1 (April 27, 2020)

handle is hein.crs/goveayf0001 and id is 1 raw text is: Congressional *.Research Service informing the legis ative debate since 1914____________________ COVID-19-Related Loan Assistance for Agricultural Enterprises Updated April 27, 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 Economic Injury Disaster Loan (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 Stimulus Assistance to Small Businesses: Issues and Policy Options, by Robert Jay Dilger, Bruce R. Lindsay, and Sean Lowry. Important note: On April 16, 2020, the SBA reported that it was no longer accepting new applications for the PPP and Emergency EIDL grant programs because funding provided by the CARES Act for these programs had been exhausted. The SBA resumed accepting PPP applications on April 27, 2020, 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 has not announced when it will begin accepting new applications for the Emergency EIDL grant program. The act also 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 EIDL loans 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 related to the borrower's retention of employees and wages and the use of the funds for specified purposes, such as payroll and employee benefits. PPP loans can be used for payroll costs; costs related to the continuation of group health care benefits during periods of paid sick, medical, or family leave, and insurance premiums; employee salaries, commissions, or similar compensations; payments of interest on any mortgage obligation (excluding any prepayment of or payment of principal on a mortgage obligation); rent (including rent under a lease Congressional Research Service https://crsreports. congress.gov IN11357 CRS INSIGHT Prepared for Members and Committees of Congress