The U.S. Small Business Administration (SBA) is now providing low-interest federal disaster loans to small nonfarm businesses in 15 Texas counties impacted by drought that began on February 14, 2023.
Small nonfarm businesses in the primary counties of Armstrong and Sutton, as well as neighboring counties Briscoe, Carson, Crockett, Donley, Edwards, Gray, Kimble, Menard, Potter, Randall, Schleicher, Swisher, and Val Verde are eligible to apply for the loans. The SBA loans are designed to help businesses dependent on farmers and ranchers who have experienced agricultural production losses due to the drought, as well as those directly affected by the disaster.
Eligible businesses include small agricultural cooperatives, small businesses engaged in aquaculture, and most private nonprofit organizations of any size. They may qualify for Economic Injury Disaster Loans of up to $2 million to help meet financial obligations and operating expenses, which could have been met if the drought had not occurred.
These loans are based solely on the financial impact of the disaster and not on any actual property damage. The loans have an interest rate of 4% for businesses and 2.375% for private nonprofit organizations, with a maximum term of 30 years. They are available to small businesses and most private nonprofits that lack the financial ability to offset the adverse impact without hardship.
While businesses primarily engaged in farming or ranching are not eligible for SBA disaster assistance, nurseries can apply for SBA assistance in drought disasters. Agricultural enterprises should contact the Farm Services Agency regarding the U.S. Department of Agriculture assistance made available through the Secretary’s declaration.
To apply for these loans, applicants can visit the SBA website at https://disasterloanassistance.sba.gov/, call the SBA Customer Service Center at (800) 659-2955, or email disastercustomerservice@sba.gov. Completed applications should be mailed to U.S. Small Business Administration, Processing and Disbursement Center, 14925 Kingsport Road, Fort Worth, TX 76155. The deadline for applying for economic injury is December 7, 2023.
This article, "SBA Offers Economic Injury Disaster Loans to Texas Small Businesses Affected by Drought" was first published on Small Business Trends
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