Delgado seeks reason for SBA farmer omission

Farmers already reeling from the coronavirus pandemic are facing a new challenge: access to disaster relief.

Rep. Antonio Delgado, D-19, convened a phone meeting with his agriculture advisory committee on Monday to explain how the CARES Act will affect the farmers in his district.

As farms continue to struggle with fluctuating demand and market disruptions due to COVID-19, Delgado sought to clarify which types of relief are currently available to local farmers and producers.

While small farmers are eligible for the act’s Paycheck Protection Program, they are excluded from receiving Economic Injury Disaster Loans offered through the Small Business Administration, a decision the congressman opposed in a letter to SBA Administrator Jovita Carranza on Apr. 2.

In the bipartisan letter, signed by 86 members of Congress, Delgado expressed dismay that farmers are excluded from SBA disaster grants and loans.

“We were shocked and disappointed that, contrary to congressional intent, the Small Business Administration singles out farmers and agricultural businesses as ineligible for this program,” the letter said.

The CARES Act was intended to provide Economic Injury Disaster Loans to farmers and it remains unclear why they were excluded, Delgado said in an interview on Monday.

“We are trying to understand how we got here,” he said. “Where was the breakdown? Because from our vantage point, they would have been included.”

The congressman said it is critical for farmers to access the SBA’s disaster funds, which can provide successful applicants with a $10,000 advance within three days.

“That $10,000 advance is no owed money, there is no repayment plan for that $10,000, so it’s a very important program that we want to make sure farmers have access to,” Delgado said.

Delgado acknowledged the COVID-19 pandemic had created some uncertainty around which agencies can provide assistance to farmers.

“But in unprecedented times, where you are trying to marshal as many assets as you possibly can and provide as many outlets to support our local economies, then in this instance it is imperative that we do whatever we can to cast as wide a net as possible and make the adjustments accordingly,” he said.

Eric Ooms, who was on the call with Delgado and serves as a member of Delgado’s agriculture advisory committee, said he agrees that farmers should have access to SBA programs, including disaster loans.

“When there is a disaster, the USDA takes care of farmers and the SBA takes care of small businesses, but this is not a natural disaster, and that is why Delgado’s move is logical,” said Ooms, who is the owner of Ooms and Sons Dairy Farm in Chatham and vice president of the New York Farm Bureau.

Farmers must have information and support as they access the available federal resources, said Todd M. Erling, executive director of the Hudson Valley AgriBusiness Development Corporation. Erling participated in the call on Monday as a member of Delgado’s agriculture advisory committee.

“Farmers need the flexibility to choose the funding source that fits them best,” he said.

Delgado discussed the CARES Act’s $9.5 billion in federal funding for local producers with his agriculture advisory committee, noting that there is still some uncertainty about how farmers will access the funding.

Delgado said he is working to ensure that small farms, like those found throughout his district, will not be at a disadvantage in accessing funding.

“The last thing we want is for certain types of operations and scales in certain parts of the country to get these resources, much like was the case with the tariffs,” he said.

The advisory committee also heard from Delgado about how farmers can benefit from the Paycheck Protection Grant Program through the SBA. Some members of the committee were unaware that farmers are eligible for the program.

“There was some confusion on that, so it was helpful to make sure that folks understood that farmers can access those loans that turn into grants, on the condition that you maintain your labor force,” he said.

Ooms said that farmers aren’t accustomed to working with the SBA, which they would need to do to access the Paycheck Protection Program.

Most farmers borrow money from Farm Credit, which goes through the USDA, not the SBA, Ooms said.

“That’s a little bit of a wrinkle,” he said. “It’s not that Farm Credit can’t do it, but they are not used to working with the SBA.”