The CARES Act 7(a) lending program will go through qualified lenders and should help farmers in getting faster responses when they reach out locally. It clearly says “these loans may be forgiven if borrowers maintain their payrolls during the crisis or restore their payrolls afterward.” This U.S. Chamber of Commerce CARES Act fact sheet explains the act pretty clearly.
CARES Act Update 3/31/20
Economic Injury Disaster Advance Loan
In response to the Coronavirus (COVID-19) pandemic, small business owners in all U.S. states, Washington D.C., and territories are eligible to apply for an Economic Injury Disaster Loan advance of up to $10,000.
This advance will provide economic relief to businesses that are currently experiencing a temporary loss of revenue. Funds will be made available within three days of a successful application. This loan advance will not have to be repaid.
This summary was written on March 27, 2020 and examines some of the difficulties specific to our industry.
The shellfish aquaculture industry is highly diverse with many interlocking elements. Our farmers depend on a vast network of shellfish dealers, truckers, restaurants (and to a lesser extent fish mongers and supermarkets) to deliver our product to end consumers.
The full impact of the pandemic on these businesses will largely depend on the duration of the mandates for social distancing and restaurant closures. There is a huge difference between a 30-day shutdown and a three- to six-month shutdown. Read the COVID-19 economic Impact summary.