Hawaii Department of Agriculture
Eligible farmers may now apply for emergency loans of up to $150,000 at 3 percent interest. Loans of $100,000 or less will not require credit denials from other financial institutions, which would normally be required for agricultural loans. The board also waived the three-year residency requirements normally required for agricultural loans.
Agricultural Loan Division
Hawaiʻi Department of Agriculture
Contact: Dean Matsukawa, Administrator
Phone: (808) 973-9460
Farmers interested in applying for an emergency loan should contact their nearest HDOA office:
Oahu, Kauai, Maui – (808) 973-9460
Hilo – (808) 933-9975
Kona – (808) 323-7591
Besides emergency loans, HDOA also offers micro-loans for those needing loans of $25,000 or less. Micro-loans involve less paperwork and swifter processing.
Hawaii Department of Business, Economic Development and Tourism
DBEDT’s Community Based Economic Development (CBED) Program program’s Revolving Fund can do small business loans. They’ve partnered with the Department of Agriculture to make small business loans to agricultural businesses.
Currently, the Department of Agriculture’s micro-loan program and our CBED program is comfortable doing up to $25,000 each – total of up to $50,000 – depending on the qualifications of the loan applicant and what the loan funds are to be used for.
Hawaiʻi Department of Business Economic Development and Tourism
Contact: Wayne Thom
More DBEDT opportunities can be found on https://invest.hawaii.gov/
U.S. Department of Agriculture
USDA Farm Service Agency
If you are an FSA farm loan program borrower impacted by the pandemic, you can apply for loan servicing (reschedule loan terms, debt set-aside, etc.) with your local County Farm Service Agency Office.
County Farm Service Agency Offices:
Contact: Robert Ishikawa, County Executive Director
Phone: (808) 245-9014 x 104
Fax: (855) 356-9495
Contact: Jason Shitanishi, County Executive Director
Phone: (808) 861-8538 x 104
Fax: (855) 356-9490
Contact: James Robello, County Executive Director
Phone: (808) 871-5500 x 105
Fax: (855) 356-9494
Contact: Lester Ueda, County Executive Director
Phone: (808) 933-8341
Fax: (855) 356-9492
USDA Rural Development
USDA Rural Development has taken a number of immediate actions to help rural residents, businesses and communities affected by the COVID-19 outbreak. Rural Development will keep our customers, partners, and stakeholders continuously updated as more actions are taken to better serve rural America
Type of Assistance:
Rural Home Loans (Direct Program):
Single Family Home Loan Guarantees:
Multi-Family Housing Direct Loans:
Additional information on Rural Development’s response to COVID-19 or to access Spanish-language versions of these documents: https://www.rd.usda.gov/coronavirus
Local Resources: USDA Rural Development, Hawaii Local Office Voice: (808) 933-8305 Fax: (855) 878-2460 www.rd.usda.gov/hi
USDA COVID-19 Food Assistance Program
Summary of Assistance: USDA has developed this $19 billion program (https://www.usda.gov/coronavirus) that is made up of two components. One provides $16 billion in direct payments to farmers and producers that have suffered losses due to COVID-19. The other component provides $3 billion to regional and local distributors for purchase and distribution of fresh produce, meat, and dairy to people in need.
Responsible Federal Agency: U.S. Department of Agriculture (USDA) Agricultural Marketing Service (AMS) and Farm Service Agency (FSA).
Type of Assistance: One component of the program will provide direct payments to farmers and producers who experienced losses from January through April as a result of COVID-19 and will be capped at $125,000 per commodity or $250,000 per producer. While USDA has not published final payment rates, preliminary information provided by USDA indicates that producers will receive a single payment determined using two calculations. For price losses that occurred January 1-April 15, 2020 producers will be compensated for 85% of price loss during that period. For expected losses from April 15 through the next two quarters, producers will be compensated for 30% of expected losses. The other component of the program will provide contract awards for purchase, assembly, and delivery of commodity boxes containing fresh produce, meat, and dairy to those in need.
Eligibility Requirements: USDA has confirmed that producer participation in the Small Business Administration (SBA) relief programs does not impact eligibility for USDA CFAP.
Direct Payment to Farmers
Producers of the following commodities (Details of eligible commodities have not been finalized by USDA):
- Specialty Crop Producers (National Total $2.1 billion)
- This includes domestically-produced floriculture (cut flowers) and likely nursery Livestock Producers (National Total $9.6 billion)
- Cattle (National Total $5.1 billion)
- Dairy (National Total $2.9 billion)
- Hogs (National Total $1.6 billion)
- Row Crop Producers (National Total $3.9 billion)
- Other Crop Producers (National Total $500 million)
Producers who have an Adjusted Gross Income (AGI) under $900,000 or have an AGI over $900,000 and derive at least 75 percent of their income from farming.
Producers who supply retail markets, farmers markets, restaurants, food services, or terminal markets.
Purchase of Commodities for Distribution
Regional and local food distributors who have gone idle due to the closure of restaurant, hotel, and food service industries resulting from the COVID-19 pandemic. USDA will utilize distributors’ existing infrastructure and workforce to carry out this component of the program.
How to Apply?
USDA Service Centers are open for business by phone appointment only. Once the application period opens, please call your FSA county office to schedule an appointment.
In addition to the application form, USDA FSA staff will work with you to complete portions of the CCC-902 – Farm Operating Plan – if necessary. Additionally, the following forms will be needed for CFAP; if you are an existing customer, this information is likely on file at your local Service Center.
- 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.
FSA has streamlined the signup process to not require an acreage report at the time of application and a USDA farm number may not be immediately needed.
USDA FSA Staff are working with agricultural producers by phone and using email, fax, mail, and online tools like Box to accept applications.
Applications are accepted till August 28, 2020.
CFAP FACT SHEETS:
Other USDA COVID-19 Resources visit: https://www.usda.gov/coronavirus
Small Business Administration
Paycheck Protection Program:
Farmers and ranchers are eligible to sign up for the Paycheck Protection Program. The Paycheck Protection Program provides small businesses with zero-fee loans of up to $10 million to cover payroll and other operating expenses. Up to 8 weeks of payroll, mortgage interest, rent, and utility costs can be forgiven. Click here for more information.
Apply for the PPP through any existing SBA 7(a) lenders or through any federally insured depository institution, federally insured credit union or Farm Credit System institution that is participating. Current eligible lenders can be found by searching the SBA website here.
Be Prepared to Submit your Application. Some lenders are asking for the following:
- Completed SBA Sample PPP Application Form
- IRS Form 941 Employers Quarterly Tax returns for 2019
- IRS Form 1099 MISC: 2019
- schedule or reports from CPA, bookkeeper, or payroll provider
- Other Payroll Documentation including payroll
- There are no fees to apply
- Funds are available first come first served basis
- Payroll costs are capped at $100,000 on an annualized basis for each employee.
- Payroll is priority! It is anticipated that 75% of the forgiven amount must be used for payroll costs.
- Loan payments will be deferred for six months.After that the interest rate is .5%
- No collateral or personal guarantees are required.
- Neither government nor lenders will charge small businesses any fees.
- You must keep employees on the payroll – or rehire quickly.
- Forgiveness is based on maintaining or quickly rehiring employees and maintaining salary levels.
- Forgiveness will be reduced if full-time headcount declines, or if salaries and wages decrease.
- Businesses with 500 or fewer employees are eligible – including nonprofits, veterans’ organizations, tribal concerns, self-employed individuals, sole proprietorships and independent contractors.
- There are programs for Medium (500-1000 person) businesses and large businesses. We are happy to share this info with you
Information and application forms may also be obtained by calling the SBA’s Customer Service Center at 1-800-659-2955 (1-800-877-8339 for the deaf and hard-of-hearing) or by sending an email to firstname.lastname@example.org.
Economic Injury Disaster Loan:
In response to the Coronavirus (COVID-19) pandemic, small business owners in all U.S. states, Washington D.C., and territories were able to apply for an Economic Injury Disaster Loan advance of up to $10,000. This advance is designed to provide economic relief to businesses that are currently experiencing a temporary loss of revenue. This loan advance will not have to be repaid. SBA will begin accepting new Economic Injury Disaster Loan (EIDL) and EIDL Advance applications on a limited basis only to provide relief to U.S. agricultural businesses.
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)).
- 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.
At this time, only agricultural business applications will be accepted due to limitations in funding availability and the unprecedented submission of applications already received. Applicants who have already submitted their applications will continue to be processed on a first-come, first-served basis. 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.
Eligible agricultural businesses may apply for the Loan Advance here.
For small businesses that already have an SBA loan (such as a 7(a), 504, or microloan) or take one out within 6 months after the CARES Act is enacted, the SBA will pay all loan costs for borrowers, including principal, interest, and fees, for six-months. SBA borrowers may also seek an extension of the duration of their loan and delay certain reporting requirements. Click here for more information.
If you need help accessing or applying for any small business assistance, reach out to your local Small Business Development Center (https://www.hisbdc.org). Assistance is also available at Women’s Business Center (https://www.mcblhawaii.org), SCORE Hawai‘i (https://hawaii.score.org) or the Hawai‘i SBA District Office (https://www.sba.gov/offices/district/hi/honolulu).
Assistance to Agricultural Producers from U.S. Department of Agriculture (USDA)
The Coronavirus Aid, Relief, and Economic Security (CARES) Act provides $9.5 billion to the USDA to support agricultural producers impacted by the coronavirus, including:
- producers of specialty crops,
- producers that supply local food systems, including farmers markets, restaurants, and schools, and
- livestock producers, including dairy producers.
This is a new program, so the USDA has not yet established details such as how to apply or how much funding producers can get from the program. When available, more information will be posted at https://www.usda.gov/coronavirus.
Assistance to Agricultural Producers from the Small Business Administration (SBA)
- Farmers, and ranchers that qualify as small businesses under SBA regulations are eligible to apply for the SBA paycheck protection loan program. Factsheets about the SBA’s paycheck protection loans and other SBA programs are available on Senator Schatz’s website. In addition, the USDA has Frequently Asked Questions for farmers and ranchers on its website.
- The CARES Act also allows the Farm Credit Agency to authorize lenders familiar to farmers and ranchers to make PPP Loans. For Hawai‘i’s agricultural producers, that will most likely be American AgCredit. Their website has further information.
Caution: Companies may not receive payments from both of these USDA and SBA programs for the same COVID-19 impact. Companies should determine which program is better for their needs.
In addition, farm and ranch employees may be eligible for the expanded Unemployment Insurance coverage created under the CARES Act. More information on expanded Unemployment Insurance is available on Senator Schatz’s website.
Income Tax: Active Farm Losses
- The CARES Act also turns off active farming loss rules for tax years beginning after December 31, 2017, and before December 31, 2020.
- An active business loss is defined as deductions in excess of income and gain attributable to a trade or business in which the taxpayer actively participates plus $250,000 ($500,000 for joint filers) (i.e., active business losses in excess of $250,000 ($500,000 for joint filers) were disallowed by the 2017 Tax Law and treated as NOL carryforwards in the following tax year).
- For more information, please check the IRS’s website at https://www.irs.gov/coronavirus.
Training and Support for Migrant Farmworkers
The bill includes $360 million for the Department of Labor to invest in programs that provide training and supportive services for dislocated workers, seniors, migrant farmworkers, and homeless veterans.
Visit: https://www.schatz.senate.gov/coronavirus/agriculture for more information.
How to apply for unemployment?
FOR FIRST TIME APPLICANTS, PLEASE:
FOR RETURNING APPLICANTS, PLEASE:
TOLL FREE NUMBERS FOR UNEMPLOYMENT ASSISTANCE:
- (833)901-2272 for Password Resets
(833)901-2252 for Appointments
Sole proprietors and independent contractors should apply for unemployment insurance using this form (https://huiclaims2020.hawaii.gov/initial-claim) and not through the Hawai‘i Department of Labor’s general website form. The Hawai‘i Department of Labor will send a confirmation email as soon as your information is submitted.
CHECK THE STATUS OF UNEMPLOYMENT CLAIM:
As announced by Governor Ige today, the State of Hawaii is granting special tax relief for State Income taxpayers similar to the Internal Revenue Service (IRS) in response to the COVID-19 emergency.
Hawaii 2019 Income tax filing and payment due dates will be extended:
- Individual and Corporate Income tax returns for Tax Year 2019 due from April 20, 2020 to June 20, 2020 are extended to July 20, 2020.
- Individual Income tax payments for Tax Year 2019 due from April 20, 2020 to June 20, 2020 are extended to July 20, 2020.
- Corporate Income tax payments for corporations for Tax Year 2019 due from April 20, 2020 to June 20, 2020 are extended to July 20, 2020.
- Taxpayers who are entitled to a refund or pay the Tax Year 2019 Income tax due by July 20, 2020 receive an automatic extension to file the associated return by October 20, 2020.
Additional action is not needed by Income taxpayers to participate in this tax relief program. The Department is making the necessary system changes for these new due dates.
Individual income taxpayers who are expecting refunds for Tax Year 2019 are encouraged to file as soon as possible. Hawaii residents can file Form N-11 (Hawaii Resident Income tax) for FREE using Hawaii Tax Online (hitax.hawaii.gov).
Filing and payment dates for all non-Income taxes (Withholding, General Excise, Transient Accommodations, etc.) are unchanged.
The deadlines to FILE and PAY federal income taxes are extended to July 15, 2020. Click here for more information.
Employee Retention Credit: This provision would provide a refundable payroll tax credit for 50 percent of wages paid by eligible employers to certain employees during the COVID-19 crisis. The credit is available to employers, including non-profits, whose operations have been fully or partially suspended as a result of a government order limiting commerce, travel, or group meetings. The credit is also provided to employers who have experienced a greater than 50 percent reduction in quarterly receipts, measured on a year-over-year basis.
Wages of employees who are furloughed or face reduced hours as a result of their employers’ closure or economic hardship are eligible for the credit. For employers with 100 or fewer full-time employees, all employee wages are eligible, regardless of whether an employee is furloughed. The credit is provided for wages and compensation, including health benefits, and is provided for the first $10,000 in wages and compensation paid by the employer to an eligible employee. This credit is available through December 31, 2020.
Payroll Tax Payment Extensions: This provision would allow taxpayers to defer paying the 6.2 percent employer portion of certain payroll taxes through the end of 2020, with all 2020 deferred amounts due in two equal installments, one at the end of 2021, the other at the end of 2022. Deferral is not provided to employers that avail themselves of loans through the SBA’s Paycheck Protection Program. Payroll taxes that can be deferred include the employer portion of Federal Insurance Contributions Act (FICA) taxes, the employer and employee representative portion of Railroad Retirement taxes (that are attributable to the employer FICA rate), and half of SECA tax (“self-employment tax”) liability.
Immediate Expensing for Improving Qualified Improvement Property: Currently, these costs are required to be depreciated over the 39-year life of the building. The CARES Act amends the 2017 Tax Law to allow the interior improvements of buildings to be:
- Immediately expensed in the case of restaurant, retail, and most other property (classified as 15-year property), or;
- Depreciated over 20 years in the case of a real property trade or business.
The CARES Act makes this change retroactive to the 2017 Tax Law, which means that companies could amend prior years’ returns.
Tax Credits for Employers for Coronavirus-Related Paid Leave: This provision would authorize the U.S. Treasury to provide advance payment of tax credits that are available to private sector employers required to provide up to 12 weeks of coronavirus-related paid leave to those employees.
Single Employer Pension Plans: This provision would delay the required quarterly contributions for 2020 for single employer pension plans to the end of the year. The provision would also allow plans to use 2019 funded status for purposes of determining funding-based limits on plan benefits for plan years that include 2020.
Modification of Net Operating Losses (NOLs): NOLs rules allow taxpayers that experience losses to deduct those losses from past taxes paid (a “carryback”) thereby receiving a refund of those taxes, or to deduct from income earned in a future year (a “carry forward”). The CARES Act modifies current law primarily by:
- Allowing taxpayers a five year carryback period for tax years beginning after December 31, 2017 and ending January 1, 2021 (calendar years 2018, 2019, and 2020), and;
- Allowing taxpayers to use NOLs to fully offset taxable income (current law limits this to 80 percent) for tax years beginning after December 31, 2017 and ending January 1, 2021 (calendar years 2018, 2019, and 2020).
Modification of Limitation on Business Interest: Current law allows businesses to deduct business interest up to the sum of the taxpayer’s business interest income for the tax year, 30 percent of the taxpayer’s adjusted taxable income (ATI) for the tax year, and the taxpayer’s floor plan financing for the tax year. The CARES Act allows businesses to elect to deduct up to 50 percent of business interest for 2019 and 2020 rather than 30 percent and allows a taxpayer to elect to use their ATI from either their last tax year (beginning in 2019) or their ATI in the 2020 tax year.
Temporary Rule: Paid Leave under the Families First Coronavirus Response Act
On April 1, 2020, the U.S. Department of Labor announced new action regarding how American workers and employers will benefit from the protections and relief offered by the Emergency Paid Sick Leave Act and Emergency Family and Medical Leave Expansion Act, both part of the Families First Coronavirus Response Act (FFCRA). The Department’s Wage and Hour Division (WHD) posted a temporary rule issuing regulations pursuant to this new law, effective April 1, 2020. For more information, see https://www.dol.gov/agencies/whd/ffcra.
FFCRA will help the United States combat and defeat COVID-19 by reimbursing American private employers that have fewer than 500 employees with tax credits for the cost of providing employees with paid leave taken for specified reasons related to COVID-19. The legislation will ensure that workers are not forced to choose between their paychecks and the public health measures needed to combat the virus, while at the same time reimbursing businesses.
- Families First Coronavirus Response Act: Employee Paid Leave Rights (PDF)
- Spanish (PDF)
- Families First Coronavirus Response Act: Employer Paid Leave Requirements (PDF)
- Spanish (PDF)
Questions and Answers
- Families First Coronavirus Response Act: Questions and Answers
- COVID-19 and the Fair Labor Standards Act: Questions and Answers
- COVID-19 and the Family and Medical Leave Act: Questions and Answers
- Employee Rights: Paid Sick Leave and Expanded Family and Medical Leave under The Families First Coronavirus Response Act (FFCRA)
- Federal Employee Rights: Paid Sick Leave and Expanded Family and Medical Leave under The Families First Coronavirus Response Act (FFCRA)
- Families First Coronavirus Response Act Notice – Frequently Asked Questions
Field Assistance Bulletin
- Field Assistance Bulletin 2020-1: Temporary Non-Enforcement Period Applicable to the Families First Coronavirus Response Act (FFCRA)
For further information about Coronavirus, please visit the HHS’s Centers for Disease Control and Prevention.
Hawaiʻi Community Foundation
Hawaiʻi Community Foundation and Pierre and Pam Omidyar have joined together to create the Hawaiʻi Resilience Fund to rapidly deploy resources and encourage community giving to address the COVID-19 pandemic. Nonprofit organizations should email grants@hcf-Hawaiʻi.org to request assistance in the form of a grant award from this fund. Visit https://www.Hawaiicommunityfoundation.org/coronavirus for more information