The U.S. Small Business Administration (SBA) is encouraging small businesses and private nonprofit organizations in Texas to apply for federal disaster loans. These loans aim to mitigate economic losses experienced due to severe weather conditions, including storms, straight-line winds, tornadoes, and flooding from April 26 to June 5, 2024. The deadline for applications is May 7.
The disaster area encompasses the counties of Bosque, Coke, Delta, Grimes, Madison, and Rockwall. The SBA's Economic Injury Disaster Loan (EIDL) program extends to small businesses, small agricultural cooperatives, nurseries, and private nonprofits impacted by financial losses related to the disaster. However, traditional agricultural producers, such as farmers or ranchers, are not eligible for the loans, with the exception of aquaculture enterprises.
Chris Stallings, associate administrator of the Office of Disaster Recovery and Resilience at the SBA, emphasized the role of SBA loans: "SBA loans help eligible small businesses and private nonprofits cover operating expenses after a disaster, which is crucial for their recovery. These loans not only help business owners get back on their feet but also play a key role in sustaining local economies in the aftermath of a disaster."
Affected organizations can borrow up to $2 million, with interest rates set at 4% for small businesses and 3.25% for private nonprofits. Payments can be spread over a maximum term of 30 years, with interest and payments deferred for 12 months after the initial loan disbursement. Loan terms and amounts are determined according to the applicant's financial situation.
Applications can be submitted online at sba.gov/disaster. Additional information is available by contacting the SBA Customer Service Center at (800) 659-2955 or via email at disastercustomerservice@sba.gov. Telecommunications relay services can be accessed by dialing 7-1-1 for individuals who are deaf, hard of hearing, or have a speech disability.
The U.S. Small Business Administration, known for supporting American business ownership dreams, acts as a vital resource for small businesses by providing the necessary support and resources to start, grow, and recover from disasters. Services are offered through a network of SBA field offices and partnerships with both public and private entities. More details can be found by visiting www.sba.gov.