Today, iHemp Michigan launched the iHemp Hour, our new weekly online series to connect the hemp community with timely, expert information. Hosted by Mike Brevoort of the Michigan Marijuana Report, our first session tackled the most urgent issue facing our members: navigating the federal relief programs created in response to the COVID-19 pandemic.
Our featured expert was iHemp Michigan’s own Blaine Bechtold, Government & Industry Liaison and a veteran of the USDA. Blaine provided a detailed walkthrough of the two primary Small Business Administration (SBA) programs available to farmers and small businesses.
Here are the key takeaways from his presentation:
1. The Paycheck Protection Program (PPP)
This was the main focus of the discussion, designed to help businesses keep their employees on the payroll.
Who is it for? Any small business, sole proprietor, independent contractor, or self-employed individual with fewer than 500 employees that was in operation as of February 15, 2020.
What you get: A loan of up to 2.5 times your average monthly payroll costs.
The Key Benefit: Forgiveness. The loan is 100% forgivable if at least 75% of the funds are used for payroll costs. The remaining funds can be used for mortgage interest, rent, and utility payments.
How to Apply: Through an SBA-approved lender, preferably the bank you already have a relationship with.
Urgency: Blaine stressed that the $350 billion allocated to this program was being claimed very quickly, urging everyone to apply immediately.
2. The Economic Injury Disaster Loan (EIDL)
This program is separate from the PPP and is applied for directly through the SBA.
Who is it for? Small businesses suffering substantial economic injury due to the pandemic.
What you get: A long-term, low-interest loan of up to $2 million to cover necessary operating expenses. It also includes a $10,000 loan advance that is available within three days and does not need to be repaid.
How it works: The interest rate is 3.75% for businesses (2.75% for non-profits) with a term of up to 30 years.
Community Q&A Highlights
The session concluded with a lively Q&A, addressing key concerns from the community:
On Eligibility for New Businesses: A farmer who planned to start cultivating in 2020 but had no 2019 payroll asked if they would qualify. Blaine confirmed they could, though the loan request calculation would require careful consideration.
On the CBD Market: A grower with distillate and biomass from the 2019 harvest asked about the market. We recommended listing products on iHempHarvest.com, our marketplace for Michigan farmers.
On Growing Advice: Questions about planting different strains, fertilization timing, and weed control were discussed, highlighting the collaborative spirit of the iHemp Michigan community.
This inaugural iHemp Hour was a powerful demonstration of our mission in action: connecting farmers with the information they need to succeed.
Join us every Thursday at noon for the iHemp Hour as we cover the topics that matter most to Michigan’s growing hemp industry.