WASHINGTON—After hearing from farmers in Connecticut who don’t qualify for the Emergency Economic Injury Disaster Loans (EIDL) grants included in the Coronavirus Aid, Relief, and Economic Security (CARES) Act, U.S. Senator Chris Murphy (D-Conn.) and U.S. Senator Richard Blumenthal (D-Conn.) on Tuesday sent a letter to the Small Business Administration (SBA) urging the administration to modify its guidance so that farms are eligible. Farmers typically receive relief through the U.S. Department of Agriculture, but they currently aren’t able to access this relief because the funding is available only for natural disasters, not from losses due to COVID-19.

“When drafting the CARES Act, Congress did not include any statutory restrictions that would prevent farmers from receiving EIDL during the current public health emergency. As such, we believe SBA could to allow farmers to access these loans,” Murphy and Blumenthal wrote.

“Connecticut farms are a critical part of our economy and providing food to our state’s residents. Yet the COVID-19 emergency has brought about myriad challenges for Connecticut farmers and producers. As restaurants, schools, and other businesses remain closed, farms lose key revenue streams necessary to keep them solvent and operational and struggle to pay fixed debts, payroll, and other business expenses. These farmers are critical to our food security and we must support them during this difficult time,” Murphy and Blumenthal continued.

Full text of the letter can be viewed here and below:

The Honorable Jovita Carranza

Administrator

Small Business Administration

409 3rd St SW

Washington, DC 20416

Dear Administrator Carranza,

We write to request the Small Business Administration (SBA) modify guidance and allow all farmers and agricultural businesses to receive funding through the Economic Injury Disaster Loans (EIDL) Emergency Assistance grants that were included in the Coronavirus Aid, Relief, and Economic Security (CARES) Act.

We understand that farms are not typically eligible for EIDL because they receive disaster assistance relief through U.S. Department of Agriculture (USDA). However, they are not able to access relief through USDA because that funding is available only to provide relief from natural disasters, not from losses due to COVID-19. When drafting the CARES Act, Congress did not include any statutory restrictions that would prevent farmers from receiving EIDL during the current public health emergency. As such, we believe SBA could to allow farmers to access these loans.

Connecticut farms are a critical part of our economy and providing food to our state’s residents. Yet the COVID-19 emergency has brought about myriad challenges for Connecticut farmers and producers. As restaurants, schools, and other businesses remain closed, farms lose key revenue streams necessary to keep them solvent and operational and struggle to pay fixed debts, payroll, and other business expenses. These farmers are critical to our food security and we must support them during this difficult time.

We urge you to take immediate action to ensure that farmers and agricultural producers receive the economic relief they need through EIDL grants in the CARES Act.

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