Director Tanya N. Garfield’s Final Reminder

Director Tanya N. Garfield from the U.S. Small Business Administration’s Disaster Field Operations Center-West issued a final reminder today to small nonfarm businesses across 194 counties in Texas, along with neighboring counties in New Mexico and Oklahoma. The looming deadline of September 13, 2023, underscores the urgency for these entities to submit applications for an SBA federal disaster loan designed to counter economic losses resulting from prolonged high temperatures. These low-interest loans are tailored to mitigate the financial impacts of decreased revenues endured due to excessive heat between May 1 and September 30, 2022.

The counties eligible for assistance encompass a wide range, including primary Texas counties like Anderson, Aransas, and Bexar, as well as neighboring counties in Texas, New Mexico, and Oklahoma. The goal is to provide a comprehensive support network for businesses in affected regions.

Garfield, in highlighting the opportunity, explained that small nonfarm businesses, agricultural cooperatives, businesses engaged in aquaculture, and most private nonprofit organizations of all sizes are eligible to apply for Economic Injury Disaster Loans, which can amount to as much as $2 million. These funds are intended to bridge the financial gaps created by the disaster’s repercussions. As Garfield stated, these loans can be allocated to cover fixed debts, payroll, accounts payable, and other essential expenses that may be hampered due to the disaster’s aftermath.

An important aspect to note is that SBA eligibility encompasses both businesses reliant on farmers and ranchers, who have faced agricultural production losses due to the disaster, as well as businesses directly impacted by the event. It’s worth highlighting that economic injury assistance is accessible irrespective of whether the applicant suffered any property damage as a result of the disaster.

The interest rates are set at 2.935 percent for businesses and 1.875 percent for private nonprofit organizations, featuring repayment terms spanning up to 30 years. These rates and terms are established by SBA, customized to the financial situation of each applicant.

According to SBA protocol, Economic Injury Disaster Loans are made available when the U.S. Secretary of Agriculture designates an agricultural disaster. This designation was issued by the Secretary on January 13.

It’s important to clarify that businesses primarily engaged in farming or ranching are ineligible for SBA disaster assistance. Such agricultural enterprises should explore assistance avenues through the Farm Services Agency, facilitated by the U.S. Department of Agriculture as a result of the Secretary’s declaration.

To apply, businesses can make use of the online application portal, access additional disaster assistance information, and download the necessary forms via https://disasterloanassistance.sba.gov/. For inquiries, applicants can reach out to SBA’s Customer Service Center at (800) 659-2955 or send an email to disastercustomerservice@sba.gov. Individuals with hearing impairments can access telecommunications relay services by dialing 7-1-1. Completed applications should be sent to U.S. Small Business Administration, Processing and Disbursement Center, 14925 Kingsport Road, Fort Worth, TX 76155.

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