Farmers can qualify for EIDL forgivable advance

Farmers who apply for an Economic Injury Disaster Loan through the Small Business Administration can qualify for a forgivable advance of up to $10,000.

Farm management analyst Kent Theisse says traditional EIDL loans must be repaid over a term of up to thirty years.

“I guess my advice to farmers (would be to ask themselves) if they need another loan because if it’s not forgivable, it is a loan. That means you do have to pay it back, and you’ve got another loan on your books to make payments on every year.”

Even though EIDL loans are handled by the SBA, he still encourages farmers to work with their ag lender or farm business management advisor.

“Even at 3.75 percent, that’s not that much different than probably some of the going interest rates if they need to access more credit. So it may or may not be in their best interest to apply for this loan.”

Thiesse is with Minnstar Bank in southern Minnesota.  He tells Brownfield the EIDL program should be viewed as another tool in the toolbox for farmers who need short-term credit.

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