Opportunity for Texas Small Businesses: SBA Offers Economic Injury Disaster Loans

In a bid to aid small nonfarm businesses affected by recent adverse weather conditions, the U.S. Small Business Administration (SBA) has opened its doors to enterprises in 10 counties across Texas. Tanya N. Garfield, Director of SBA’s Disaster Field Operations Centre-West, made the announcement. These businesses can now avail themselves of federal disaster loans at low interest rates. The aim is to offset financial losses stemming from decreased revenues linked to excessive moisture and strong winds. The designated time frame for these challenges is May 1 – 31.

Eligible Counties

The primary counties eligible for assistance are Throckmorton and Young. Moreover, neighboring counties like Archer, Baylor, Haskell, Jack, Knox, Palo Pinto, Shackelford, and Stephens are also included.

Eligibility Criteria

Director Garfield highlighted the inclusiveness of SBA’s eligibility criteria, emphasizing that businesses reliant on farmers and ranchers who suffered agricultural production losses, as well as those directly impacted by the disaster, can apply. This encompasses small nonfarm businesses, small agricultural cooperatives, small aquaculture businesses, and most nonprofit organizations, irrespective of size. The loans, which can go up to $2 million, are aimed at helping these entities fulfill their financial commitments and operational expenses, which they might have been able to meet under normal circumstances.

It’s important to note that these loans are tied to the economic consequences of the disaster and not linked to property damage. The interest rates stand at 4 percent for businesses and 2.375 percent for most private nonprofit organizations. The repayment period extends up to 30 years. This relief measure is tailored for small businesses and nonprofits that lack the financial means to weather the adverse impacts independently.

SBA’s Intervention

SBA’s intervention was triggered by the declaration of an agricultural disaster by the U.S. Secretary of Agriculture on July 31. It’s crucial to clarify that businesses primarily engaged in farming or ranching are not eligible for SBA disaster assistance. These entities should explore assistance avenues provided by the Farm Services Agency under the U.S. Department of Agriculture’s offerings, as indicated by the Secretary’s declaration.

Application Process

For those interested in seeking aid, the application process is accessible online. Additional information about disaster assistance, as well as application downloads, can be found at https://disasterloanassistance.sba.gov/. Additionally, queries can be directed to SBA’s Customer Service Center at (800) 659-2955 or emailed 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.

The deadline to submit applications for economic injury relief is April 1, 2024.

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