INDUSTRY UPDATES
April 22, 2020
Progress for Hemp Farmers in Capitol Hill COVID Relief
We’re excited to share some great news from Capitol Hill for hemp farmers.
In last week’s Work from Home, Work for Hemp assignment, we asked you to contact the White House to ensure that hemp farmers and companies would be eligible for the Economic Injury Disaster Loan (EIDL) program, administered by the Small Business Administration (SBA).
Thanks to you and our partners in other hemp organizations such as Vote Hemp and HIA, we were successful. Under the Paycheck Protection Program (PPP) Increase Act which is expected to be signed into law this week, hemp farmers and companies are now clearly eligible for EIDLs. Even better, Congress added another $10 billion to the EIDL program and increased PPP funding from $349 billion to $659 billion.
Additionally, on April 17, USDA announced the Food Assistance Program (CFAP). Using existing funds and funds appropriated in the CARES Act, CFAP makes available $19 billion in immediate relief to farmers and ranchers. One of its two major elements, CFAP will provide $16 billion in direct support based on actual commodity losses. To qualify for a payment, a commodity must have declined in price by at least 5% between January and April. Producers who qualify will receive 85% of the price loss between January 1 and April 15. A future payment will also be available for losses in 2020 Q2 and Q3.
It is not yet known whether hemp producers will qualify for CFAP payments. We will be working with our contacts on Capitol Hill and the USDA to try to ensure the maximum support. More information on CFAP is available here.
For other economic assistance programs, USDA has released this helpful primer on COVID-19 federal resources. Links to resources potentially available to hemp farmers and companies are provided, including technical/assistance/training/management, financial assistance, and general state/local resources. The following financial assistance programs are included:
For-profit corporations (corporations, LLCs, sole proprietorships, etc.):
- USDA Rural Development Business and Industry Loan Guarantee
- USDA Farm Service Agency: Microloan Programs
- SBA Paycheck Protection Program
- SBA COVID-19 Economic Injury Disaster Loan
- DOL: National Health Emergency Dislocated Worker Grants
- DOL: Wage and Hour Division: COVID-19 and the American Workplace
Agricultural producers and ranchers:
- Farmers.gov: Funding for Farmers, Ranchers, and forest landowners
- Farm Loan Discovery Tool
- USDA Farm Service Agency: Microloan Programs
- Find your local Natural Resources Conservation Service office
- SBA Paycheck Protection Program
Individuals/households:
- Food Finder: Connects families to feeding sites
- USDA RD Single Family Guaranteed Housing Loan Program Website
- USDA Meals for Kids Site Finder
- DOL: Wage and Hour Division: COVID-19 and the American Workplace
- VA: Housing Assistance
- VA: Homeless Housing Assistance
Federally-recognized tribes and tribal organizations:
- Food Distribution Program on Indian Reservations (FDPIR)
- USDA Rural Development ReConnect Program
- USDA Rural Development Distance Learning and Telemedicine (DLT)
- Institute of Museum and Library Services: Grants to expand digital network access etc.
- HUD Native American Programs: IHBG and ICDBG funds
- Indian Health Services: Increased funding in multiple programs
- Bureau of Indian Affairs: Indian Affairs Operation of Indian Programs
- $8 billion set-aside for tribal nations from the Coronavirus Relief Fund to use for expenditures incurred due to the COVID-19 public health emergency
More information on the immediate actions USDA is taking to respond to COVID-19 is available at www.usda.gov/coronavirus.