President Trump signed the CARES Act, a $2 trillion emergency stimulus plan, into law on March 27, 2020. The Small Business Administration (SBA) developed the Paycheck Protection Program, a $350 billion lending program, as part of the new legislation. It is given to businesses with 500 or less employees to assist with healthcare, payroll, rent, utilities, and other expenses. The Small Business Administration also extended some of its existing programs, such as the Economic Injury Disaster Loan Program. President Biden signed the American Rescue Plan Act into law in March 2021, which extended the funds.
Funding can be utilized to purchase land, buildings, equipment, machinery, and repairs for any business-related needs. Other distinctive variations in these government credit schemes include, among other things, providing management help to eligible small start-ups with significant development potential.
Loans for Agriculture, Rural Development, and Farm Service
These loans give cash to promote farming, which can lead to increased food security and rural development. Several loan options for agriculture and farm service are available. Within the eligibility conditions, capital allows the purchase of animals, feed, farm machinery, equipment, and even lands.
Loans are also available for the construction of on-farm storage, cold storage, and commodity processing and handling facilities. Other potential loans include those for fisheries, aquaculture, mariculture, and commercial fishing. The Rural Houses Agricultural Labor Housing Loans and Grants program provides funds for the construction and upkeep of housing for domestic farm laborers.
Veterans’ Loans
The federal government of the United States gives benefits to eligible service members, including veterans, reservists, National Guard soldiers, and some surviving spouses. The loans can be used to purchase, maintain, and adapt a home, as well as to refinance loans. Other expenses may be covered through financial advantages provided by various programs.
Loans for Disaster Relief
Disaster relief loans compensate farmers, homeowners, and commercial businesses for losses caused by natural and man-made disasters. Businesses may also be protected in the absence of important personnel who serve in the military and have been summoned to active duty.
If a business, farm, house, or other property is damaged by a disaster and the site is labeled a disaster area, such disaster relief loans can help owners and workers re-establish themselves as well as their enterprises and properties that were devastated by the disaster.
The SBA boosted funds for its Economic Injury Disaster Loan program for firms hit by the economic crisis as part of the CARES Act, Paycheck Protection Program, and Health Care Enhancement Act.
