The U.S. Small Business Administration (SBA) has issued a reminder to Texas-based small businesses and private nonprofit organizations (PNPs) about the June 3 deadline to apply for federal disaster loans. These loans aim to offset economic losses resulting from Hurricane Beryl, which affected the state from July 5 to July 9, 2024.
The impacted counties include Colorado, Hardin, Harrison, Panola, and Tyler. The SBA's Economic Injury Disaster Loan (EIDL) program is providing support to eligible small businesses, small agricultural cooperatives, nurseries, and PNPs experiencing financial challenges due to the disaster. It is important to note that agricultural producers, farmers, and ranchers are not eligible for these loans, except for those involved in aquaculture businesses.
The EIDL loans are intended to cover working capital needs resulting from the hurricane. They are available even if physical damage was not sustained. These loans can be used to cover fixed debts, payroll, accounts payable, and other obligations that are difficult to meet due to the impact of the disaster.
“SBA loans help eligible small businesses and private nonprofits cover operating expenses after a disaster, which is crucial for their recovery,” said Chris Stallings, associate administrator of the Office of Disaster Recovery and Resilience at the SBA. He further emphasized that these loans assist businesses in resuming operations while contributing to the economic stability of affected areas.
The loan amounts can reach up to $2 million, with interest rates set at 4% for small businesses and 3.25% for PNPs, payable over a maximum of 30 years. Interest accrual and repayment obligations begin 12 months following the initial disbursement. Loan amounts and terms are tailored to the applicant's financial situation.
Applications for these loans can be submitted online at sba.gov/disaster. Further information is available by contacting the SBA Customer Service Center at (800) 659-2955 or via email at disastercustomerservice@sba.gov. For assistance through telecommunications relay services, reach out using 7-1-1. Applications must be submitted by June 3.
The U.S. Small Business Administration is dedicated to supporting small businesses and entrepreneurs through various resources, including disaster recovery assistance. It operates through a network of field offices and partnerships with public and private entities. More information is available at www.sba.gov.