Small-scale farmers haven’t qualified for loans from the Small Business Administration (SBA) for the past thirty years.

That changed last week, when the SBA opened an application for an ag-specific Economic Injury Disaster Loan (EIDL), including up to $10,000 that doesn’t need to be repaid, and up to $150,000 in loans.

The move came after bi-partisan advocacy for small-scale producers from both the House and the Senate.

Historically, SBA has deemed “agricultural enterprises” as ineligible for most SBA loans, leaving small-scale producers to apply for assistance through the Farm Service Agency (FSA), which doesn’t give out aid for economic disasters.

While small-scale farmers and their advocates are thrilled to be eligible for SBA aid, they’re skeptical about the EIDL program and its ability to solve the increasing problems of small-scale agriculture operations during the COVID-19 pandemic and economic fallout.

“It’s helpful but it’s not enough,” said Jordan Treakle, policy director with the National Family Farm Coalition (NFFC), to The Counter. “This program is going to run out of money and there aren’t enough resources in this particular program to help farmers in need.”

Treakle also expressed concern that independent, diversified, or organic producers who sell directly into local and regional markets could be left out of relief funds.

The National Sustainable Agriculture Coalition (NSAC) released an impact assessment in March, estimating local and regional food markets will face a total loss to the economy of up to $1.32 billion from March to May of this year.

The CARES Act passed by Congress earlier this year provides $24 billion in emergency aid for farmers and ranchers, but doesn’t specify how the aid will provide direct assistance to small-scale producers.

Congress is expected to pass the HEROES act this week, which includes $20 million to the Farm and Ranch Assistance Network program, $50 million in additional funding to support local farmers, farmers markets, and other local food outlets who are impacted by COVID-19 market disruptions, and $50 million to support beginning farmers and ranchers with financial, operational, and marketing advice.

Read More:

• After 30 years of being shut out, the Small Business Administration just allowed farmers to apply for economic disaster loans (The Counter)

• Farming and Ranching is a Business (Farm Bureau News)

• Confusion Remains Over SBA Assistance For Farmers (National Sustainable Agriculture Coalition)

• House Democrats propose billions in additional farm relief (AgriPulse)