Private nonprofit organizations in Texas have until September 4 to apply for low-interest federal disaster loans from the U.S. Small Business Administration (SBA) to address physical damage caused by severe storms, straight-line winds, and flooding that occurred between July 2 and July 18.
The SBA’s disaster declaration covers the following counties: Burnet, Coke, Concho, Edwards, Hamilton, Kendall, Kerr, Kimble, Lampasas, Llano, Mason, McCulloch, Menard, Real, Reeves, San Saba, Schleicher, Sutton, Tom Green, Travis and Williamson.
Eligible private nonprofits that provide services of a governmental nature can apply for business physical damage loans. These organizations may borrow up to $2 million to repair or replace damaged or destroyed real estate and other assets such as machinery and equipment.
Applicants can also request an increase of up to 20% of their verified physical damage loan amount for mitigation measures. Such improvements might include insulating pipes and attics or installing storm windows to protect against future disasters.
“SBA loans help eligible private nonprofits cover both physical damage as well as economic injury 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. “These loans not only help private nonprofits get back on their feet but help them rebuild.”
In addition to physical damage loans, PNPs may apply for Economic Injury Disaster Loans (EIDLs) to assist with working capital needs such as payroll or accounts payable. This assistance is available regardless of whether any property was physically damaged.
Interest rates on these loans can be as low as 3.625% with repayment terms up to 30 years. Interest does not accrue and payments are deferred until one year after the first loan disbursement. Loan amounts and terms are set based on each applicant’s financial condition.
The SBA encourages prompt submission of applications so they can be processed efficiently in the order received.
To apply online or obtain more information about disaster assistance from the SBA visit sba.gov/disaster. Additional support is available by calling (800) 659-2955 or emailing disastercustomerservice@sba.gov. Telecommunications relay services are accessible by dialing 7-1-1.
The deadline for returning applications for physical property damage is September 4; economic injury applications must be submitted by April 6 next year.
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