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1 1 (May 4, 2021)

handle is hein.crs/govedes0001 and id is 1 raw text is: Congressional *.Research Service COVID-19-Related Loan Assistance for Agricultural Enterprises Updated May 4, 2021 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), expanded eligibility for Emergency Economic Injury Disaster Loans (EIDLs), and established Emergency EIDL grants to provide short-term, economic relief to certain small businesses and nonprofits. The CARES Act also made certain agricultural enterprises eligible for COVID-19 relief. PPP Loan Terms and Eligibility PPP loans feature a two- or five-year term at 1% interest; a 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; group health care benefits during periods of paid leave, and insurance premiums; employee salaries 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 agreement); utilities; interest on any other debt obligations incurred before February 15, 2020; and refinancing of an SBA EIDL made between January 31, 2020, and April 3, 2020. Agricultural enterprises, defined in Section 18(b) of the Small Business Act as small business concerns engaged in the production of food and fiber, ranching, and raising of livestock, aquaculture, and all other farming and agricultural-related industries, may apply for a PPP loan if the applicant meets the PPP's eligibility requirements: any SBA 7(a) loan guarantee program-eligible small business; any business, 501(c)(3) nonprofit organization, 501(c)(19) veteran's organization, or tribal business that has not more than 500 employees; or, if applicable, the SBA's size standard in number of employees for their industry. Congressional Research Service https://crsreports.congress.gov IN11357 CRS INSIGHT Prepared for Members and Committees of Congress