Based on some information we received from two representatives from the Small Business Administration (SBA), wineries are indeed eligible for Economic Injury Disaster Loans (EIDL). We have been receiving conflicting information about winery eligibility due to agricultural enterprises being excluded from loan eligibility. Due to the manufacturing aspect of a winery’s business, wineries are eligible. A vineyard-only operation is not eligible.
The EIDL loan application (view here: COVID-19 ECONOMIC INJURY DISASTER LOAN APPLICATION) asks the applicant if they are an agricultural enterprise. If you are applying as a winery, you should not check that box in order to continue with the application. It must be noted that the EIDL loans are not forgivable, however approved applicants can receive a $10,000 advance on the loan that will NOT need to be repaid.
EIDL loans are separate from the Paycheck Protection Program (PPP) loan as guaranteed in the CARES Act. Those are fully forgivable loans for small businesses if used primarily for payroll. SBA has stated that you can apply for both a EIDL loan and a PPP loan but cannot use them for the same purposes.. We encourage you to visit the Small Business Administration website to see which loan might be best for your business.
Please let us know if you have any questions or issues accessing either loan program. Direct all questions to Michael Kaiser at email@example.com.