The US Small Business Administration (SBA) has issued a reminder that the deadline for applying for economic injury loans for small nonfarm businesses in eight Texas counties is approaching.
Deadline for Applying for EIDL Loans Due to Texas Drought Approaching
Tanya N. Garfield of the SBA’s Disaster Field Operations Center-West Texas reminded small nonfarm businesses of the August deadline to apply for a federal SBA emergency loan for economic injury. The low-interest loans were offered to offset economic losses due to reduced income due to drought.
Texas EIDL Deadlines Approaching
The deadline for Fisher, Jones, and Scurry primary counties is August 15, and is the same deadline for adjacent counties of Borden, Callahan, Garza, Haskell, Kent, Mitchell, Nolan, Shackelford, Stonewall, and Taylor.
The deadline for Camp, Franklin, Hopkins, Knox, Titus, Upshur, and Wood primary counties is August 22, and is the same deadline for neighboring counties Baylor, Delta, Foard, Gregg, Harrison, Haskell, Hunt, King, Marion, Morris, Rains, Red River, Smith, Stonewall, Throckmorton, and Van Zandt.
The interest rate for the loans is only 2.83% for corporations and 1.875% for private non-profit organizations. The terms are for a maximum of 30 years, with the actual loan amounts and terms to be determined by the SBA, which bases them on the financial condition of each applicant.
Helping companies meet working capital needs
Director Garfield has stated that small non-farm businesses, small agricultural cooperatives, small businesses engaged in aquaculture, and most private non-profit organizations of all sizes can apply for economic injury loans of up to $2 million. The loans are intended to help such companies meet the working capital needs resulting from the disasters.
“Economic Injury Disaster Loans can be used to pay fixed debt, payroll, accounts payable and other bills that cannot be paid due to the impact of the disaster,” said CEO Garfield.
“The eligibility for SBA covers both the economic impact on businesses that depend on farmers and ranchers who have suffered agricultural production losses as a result of the disasters, as well as on businesses directly affected by the disasters. Economic injury assistance is available whether or not the applicant has suffered material damage.”
Texas Drought Monitor Reviews
Texas has suffered greatly from drought over the years and has a specialized Drought Monitor service that is updated weekly to reflect the drought in the Lone Star State.
The Drought Monitor uses a five-category system, where D0 stands for ‘abnormally dry’ conditions and is represented by the color yellow on the drought map. These conditions usually result in stunted forage germination, reduced hay mowing, and an increase in grass fires. The next category is D1 which means ‘moderate drought’ and is represented by a light pink color on the drought map. These conditions hamper dryland crops and see an increase in the frequency of wildfires.
The next category up is D2 which means ‘severe drought’ and is represented by the color orange on the drought map. Expect poor grazing conditions and the increased danger of wildfires requiring fire bans. The D3 category means ‘extreme drought’ and is represented by the color red on the drought map. There will be dust and sand storms, as well as massive reductions in crop yield.
The last category is D4 and means ‘exceptional drought’ and is represented by a dark red color on the drought map. These conditions entail significant financial losses in the seafood, forestry, tourism and agriculture sectors.
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This post Deadline for Applying for EIDL Loans Due to Texas Drought Approaching
was original published at “https://smallbiztrends.com/2022/07/deadline-for-eidl-loans-due-to-texas-drought-approaching.html”