The U.S. Small Business Administration (SBA) has announced the availability of low-interest federal disaster loans for small businesses and private nonprofit organizations in Texas affected by drought conditions starting February 25. The assistance aims to offset economic losses in the counties of Austin, Brazoria, Brown, Callahan, Coleman, Colorado, Comanche, Eastland, Fort Bend, Hamilton, Jackson, Lampasas, Matagorda, McCulloch, Mills, San Saba, and Wharton.
The SBA's Economic Injury Disaster Loan (EIDL) program is open to small businesses, small agricultural cooperatives, nurseries, and private nonprofits that have suffered financial losses due to the drought. However, it does not extend to agricultural producers such as farmers or ranchers unless they are small aquaculture enterprises.
These loans are intended for working capital needs caused by the disaster and can be used even if there was no physical damage to the business or nonprofit. The funds may cover fixed debts, payrolls, accounts payable, and other bills that could not be paid because of the disaster.
“Through a declaration by the U.S. Secretary of Agriculture," said Chris Stallings from the SBA's Office of Disaster Recovery and Resilience. "SBA provides critical financial assistance to help communities recover." He added that they are pleased to offer loans to those impacted by these disasters.
Loan amounts can reach up to $2 million with interest rates as low as 4% for small businesses and 3.625% for private nonprofits. The terms can extend up to 30 years. Interest will not accrue nor payments be required until 12 months after the first loan disbursement date. Loan amounts and terms depend on each applicant’s financial condition.
Applications can be submitted online at sba.gov/disaster or through SBA’s Customer Service Center at (800) 659-2955 or via email at disastercustomerservice@sba.gov. For individuals who are deaf or hard of hearing or have a speech disability should dial 7-1-1 for telecommunications relay services.
Completed loan applications must be submitted by December 22.