SBA deadline looms for drought loans
Nonfarm businesses in Young County whose trade has suffered as a result of the drought have until Dec. 8 to apply for federal disaster loans from the U.S. Small Business Administration, the SBA Disaster Field Operations Center-West director Tanya Garfield said.
The low-interest loans are designed to offset economic losses for businesses that depend on farmers and ranchers who have suffered drought-related agricultural production losses over the past year, Ms. Garfield said.
By law, SBA makes Economic Injury Disaster Loans available when the U.S. Secretary of Agriculture designates an agricultural disaster. The Secretary declared this disaster on April 8, for 227 Texas counties and neighboring counties in Arkansas, New Mexico, and Oklahoma.
Young County is not one of the primary counties but is adjacent to the hardest-hit area and thus eligible for relief, the agency said. Businesses may apply for loans of up to $2 million to help meet working capital needs caused by the disaster, such as “fixed debts, payroll, accounts payable and other bills that cannot be paid because of the disaster’s impact,” Ms. Garfield said.
Eligible businesses include small nonfarm businesses, small agricultural cooperatives, small businesses engaged in aquaculture, and most private nonprofit organizations of any size. The interest rate is 2.83 percent for businesses and 1.875 percent for private nonprofit organizations, with terms up to 30 years, the agency said.
Applicants may apply online, receive additional disaster assistance information, and download applications at https://disasterloanassistance.sba.gov/. Applicants may also call SBA’s Customer Service Center at (800) 659-2955 or email disastercustomerservice@sba.gov for more information on SBA disaster assistance. For people who are deaf, hard of hearing, or have a speech disability, please dial 7-1-1 to access telecommunications relay services. Completed applications should be mailed to U.S. Small Business Administration, Processing and Disbursement Center, 14925 Kingsport Road, Fort Worth, TX 76155.