SBA Loan Deadline Approaches Due to Drought

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Small non-farm businesses in 20 counties in Texas and neighboring New Mexico counties have until March 16 to apply for a federal disaster loan from the Small Business Administration for economic harm, according to Tanya N. Garfield, director of the Small Business Administration. SBA Disaster Operations Center in the United States. .

These low-interest loans are to offset economic losses due to declining income caused by drought in subsequent major counties that began on June 30, 2020, according to a press release from the agency.

Major counties in Texas include Armstrong, Baily, Castro, Deaf Smith, Hale, Lamb, Parmer, Randall, and Swisher. Neighboring Texas counties included in eligibility are Briscoe, Carson, Cochran, Crosby, Donley, Floyd, Gray, Hockley, Lubbock, Oldham, and Potter.

Neighboring New Mexico counties included are Curry, Quay, and Roosevelt.

According to Garfield, small non-farm businesses, small farm cooperatives, small businesses engaged in aquaculture, and most private nonprofits of any size can apply for economic disaster loans of up to $ 2. million dollars to help meet the working capital needs caused by the disaster.

“Economic disaster loans can be used to pay off fixed debts, salaries, accounts payable and other bills that cannot be paid due to the impact of the disaster,” Garfield said in the communicated.

“SBA eligibility covers both the economic impacts on businesses dependent on farmers and ranchers who suffered agricultural production losses caused by the disaster and on businesses directly affected by the disaster. Assistance for economic injury is available whether or not the claimant suffered property damage, ”Garfield added.

The interest rate is 3% for companies and 2.75% for private non-profit organizations with terms of up to 30 years. The amounts and terms of the loan are set by the SBA and are based on the financial status of each applicant.

By law, the SBA makes economic disaster loans available when the US Secretary of Agriculture designates an agricultural disaster. The secretary declared this disaster on July 16, 2020.

Businesses primarily engaged in agriculture or ranching are not eligible for SBA disaster assistance. Farm businesses should contact the Farm Services Agency regarding the U.S. Department of Agriculture assistance made available by the Secretary’s Statement. However, nurseries are eligible for disaster assistance from the SBA in the event of drought.

Applicants can apply online, receive additional information about disaster assistance, and download applications at disastreloanassistance.sba.gov/. Applicants can also call the SBA Customer Service Center at (800) 659-2955 or email [email protected] for more information.

Completed applications should be mailed to US Small Business Administration, Processing and Disbursement Center, 14925 Kingsport Road, Fort Worth, TX 76155.

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