Coronavirus Food Assistance Program (CFAP)
This program is for agricultural enterprises that experienced losses due to the coronavirus. This is a grant and is not paid back. There are no stipulations on how the funds are to be spent.Recipients of PPP, EIDL or any other USDA program are ELIGIBLE for CFAP! Record keeping: there will be some self-certification of losses, so producers will need to save records and paperwork to demonstrate losses.
Eligible Commodities include:
- Non-specialty Crops: malting barley, canola, corn, upland cotton, millet, oats, soybeans, sorghum, sunflowers, durum wheat, and hard red spring wheat
- Livestock: cattle, hogs, and sheep (lambs and yearlings only)
- Specialty Crops
- Fruits: apples, avocados, blueberries, cantaloupe, grapefruit, kiwifruit, lemons, oranges, papaya, peaches, pears, raspberries, strawberries, tangerines, tomatoes, watermelons
- Vegetables: artichokes, asparagus, broccoli, cabbage, carrots, cauliflower, celery, sweet corn, cucumbers, eggplant, garlic, iceberg lettuce, romaine lettuce, dry onions, green onions, peppers, potatoes, rhubarb, spinach, squash, sweet potatoes, taro
- Nuts: almonds, pecans, walnuts
- Other: beans, mushrooms
Ineligible commodities include:
- Sheep more than 2 years old, eggs/layers, soft red winter wheat, hard red winter wheat, white wheat, rice, flax, rye, peanuts, feed barley, Extra Long Staple (ELS) cotton, alfalfa, forage crops, hemp, and tobacco.
CROPS NOT LISTED:
Comments were due by June 22. Check online for updates (as of 7/2 no updates):
***NEW Informational Webinars by Commodity
- Specialty Crop Producers
- Dairy & Non-Specialty Crop Producers
- Non-Specialty Crop and Livestock Producers
- FSA Programs in the time of Coronavirus
How to apply for CFAP
- Current FSA customers: 707-664-8593
- New FSA (USDA Farm Service Agency) customers: 877-508-8364
- Visit Farmers.gov/CFAP to learn more about the program
Forms to Apply
If you already work with FSA, they may have these on file for you:
- CCC-901 (Also Available in Spanish) – Identifies members of a farm or ranch that is a legal entity. Member Information will be completed by legal entities and joint operations to collect the following:
- member names, addresses, and Tax Identification Numbers
- citizenship status
- CCC-941 (Also Available in Spanish) – Reports your average adjusted gross income for programs where income restrictions apply.
- CCC-942 – If applicable, this certification reports income from farming, ranching, and forestry, for those exceeding the adjusted gross income limitation.
- AD-1026 (Also Available in Spanish) – Ensures compliance with highly erodible land conservation and wetland conservation.
- AD-2047 – Provides basic customer contact information.
- SF-3881 – Collects your banking information to allow USDA to make payments to you via direct deposit.
USDA will partner with regional and local distributors to purchase $3 billion in fresh produce, dairy, and meat.
- Approved distributors and wholesalers will provide a preapproved box of fresh produce, dairy, and meat products to food banks, community and faith based organizations, and other non-profits serving Americans in need.
- USDA Ag Marketing Service is running this program
About SBA Loans for Ag Enterprises
A note about the Federal programs for agriculture (farming/ranching) operations:
Apply for any and all programs that you might get funds for, they talk to each other. Building the plane while it’s rolling down the runway. Lots of misunderstandings about programs by applicants and lenders. Have good payroll and business records.
The programs and situation is very fluid, there no cost and no penalty for applying – additional legislation and programs are in the pipeline. Get in the system and apply. Rules are fluid and changing. Just apply!
- Per the SBA (as of 4/8): Agricultural Enterprises: If the primary activity of the business is agricultural, as defined in § 18(b)(1) of the Small Business Act, neither the business nor its affiliates are eligible for EIDL assistance even though the non-agricultural portion of an agricultural enterprise may be eligible for business disaster assistance (see paragraph 3.4 G).
If more than 50% of an Applicant’s cost of goods sold (COGS) is derived from the purchase of goods from the principals’ and/or affiliates’ agricultural production, the Applicant is considered an adjunct activity of an agricultural enterprise (e.g. farming operation) and not eligible for EIDL assistance.
EXCEPTION: Small businesses which are engaged in aquaculture (see subparagraph 3.4 G 3) are eligible for EIDL assistance, under § 3(z) of the Small Business Act.
- According to the Farm Commons webinars, H-2 workers aren't covered by EIDL and PPP programs.
- Check state, non-profit and local programs as well as Federal. State of California has a running list of programs: Small Business Resource List of Programs (not just agricultural).
- Business legal entities formed by 1/31/2020 are eligible.
- Farmer’s Markets are eligible for EIDL.
- Do not apply for same funds from different programs (e.g. payroll).
- Contact the local USDA FSA office for loans if cannot do EIDL. They do have options such as low interest operating loans.
A partially forgivable low interest loan through SBA with an advance of up to $10,000.
Paycheck Protection Program (PPP) Flexibility Act of 2020 was signed into law, providing businesses with more time and flexibility to keep their employees on the payroll and ensure their continued operations as we safely reopen.
Some of the key provisions include:
- Extends the time period in which borrowers must spend their PPP loans from 8 weeks to 24 weeks.
- Lowers the percentage of loan proceeds that must be spent on payroll from 75 to 60 percent.
- Extends the loan coverage period from June 30 to December 31, 2020.
- For the portion of the loan that isn’t forgiven, the measure extends the loan term from 2 years to 5 years.
SBA will soon issue rules and guidance, a modified borrower application form, and a modified loan forgiveness application implementing these legislative amendments to the PPP.
- Eligible applicants can obtain a $10,000 loan advance, within 3 days, which does not need to be repaid.
- The maximum amount of an EIDL loan is $2,000,000.
- Max loan interest 4%.
Available for businesses with less than 500 employees.
Funds can be used for:
- providing paid sick leave to employees unable to work due to the direct effect of the COVID–19;
- maintaining payroll to retain employees during business disruptions or substantial slowdowns;
- meeting increased costs to obtain materials unavailable from the applicant’s original source due to interrupted supply chains;
- making rent or mortgage payments; and
- repaying obligations that cannot be met due to revenue losses.
SBA is encouraging all eligible agricultural businesses with 500 or fewer employees wishing to apply to begin preparing their business financial information needed for their application.
The SBA will begin accepting new Economic Injury Disaster Loan (EIDL) and EIDL Advance applications on a limited basis only, in order to provide unprecedented relief to U.S. agricultural businesses. The application is available at: Streamlined Proces.
The new eligibility is made possible as a result of the latest round of funds appropriated by Congress in response to the COVID-19 pandemic.
Agricultural businesses includes those businesses engaged in the production of food and fiber, ranching, and raising of livestock, aquaculture, and all other farming and agricultural related industries (as defined by section 18(b) of the Small Business Act (15 U.S.C. 647(b)).
- For agricultural businesses that submitted an EIDL application through the streamlined application portal prior to the legislative change, SBA will process these applications without the need for re-applying.
- For more information or to apply, please visit: www.sba.gov/Disaster.
Paycheck Protection Program (PPP)
Is a forgivable loan designed to provide a direct incentive for small businesses to keep their workers on the payroll. Agricultural enterprises ARE eligible to apply for the PPP loan program. Applicants can apply to SBA or any federally insured banking institution including credit unions and the Farm Credit System.
- Program home page
- Program fact sheet
- Program borrower application
- Program application checklist
- Documentation needed to apply
- Podcast: The Business of Agriculture #129 The Conoravirus Stimulus Program
- Q: What about farming operations that don’t have employees? The farmers are losing income, but don’t have a payroll.
- A: According to Farm Commons, farms can apply for PPP as self-employed business owners. Presentation slides, an audio recording, and a video recording of the when, how, and why farmers can benefit from PPP at this folder link.
- Take financial records to the bank, they can figure out the equity draw. If 1099 is issued to an individual family member(s), they can apply as an individual business.