The U.S. Small Business Administration (SBA) has sent out a reminder that the deadline to apply for economic disaster loans for small, nonfarm businesses in eight Texas counties is approaching.
Deadline to apply for EIDL loans due to Texas drought is approaching
Director Tanya N. Garfield of the SBA’s Disaster Field Operations Center-West Texas reminded non-farm small businesses of the August deadlines to apply for an SBA federal disaster loan for economic injury. The low-interest loans were offered to compensate for economic losses due to the drop in income caused by the drought.
Texas EIDL deadlines are approaching
The deadline for main counties Fisher, Jones and Scurry is August 15 and is the same for neighboring counties Borden, Callahan, Garza, Haskell, Kent, Mitchell, Nolan, Shackelford, Stonewall and Taylor.
The deadline for primary counties Camp, Franklin, Hopkins, Knox, Titus, Upshur and Wood 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 loan interest rate is as low as 2.83% for businesses and 1.875% for private non-profit organizations. Terms can be up to 30 years, with actual loan amounts and terms to be determined by the SBA, which bases them on each applicant’s financial situation.
Helping businesses meet their working capital needs
Director Garfield said small non-farm businesses, small agricultural cooperatives, small businesses engaged in aquaculture and most private non-profit organizations of any size can apply Economic Disaster Loans up to $2 million. The loans are intended to help these businesses meet working capital needs caused by disasters.
“Economic disaster loans can be used to pay fixed debts, payroll, accounts payable and other bills that cannot be paid due to the impact of the disaster,” said director Garfield.
“SBA eligibility covers both economic impacts on businesses dependent on farmers and ranchers who have suffered agricultural production losses caused by disasters and businesses directly affected by disasters. Economic loss assistance is available whether or not the claimant has suffered property damage. »
Texas Drought Monitor Ratings
Texas has experienced many droughts over the years and has a specialized Drought Watch Service that updates weekly to show drought conditions in the Lone Star State.
The Drought Monitor uses a five category system, D0 meaning ‘abnormally dry’ conditions and represented by the color yellow on the drought map. These conditions typically result in delayed forage germination, reduced hay cutting, and increased grass fires. The next category is D1 which stands for “moderate drought” and is represented by a pale pink color on the drought map. These conditions delay dryland crops and lead to an increase in the frequency of forest fires.
The next category is D2 which means “severe drought” and is represented by the orange color on the drought map. Expect poor grazing conditions and the increased risk of wildfire necessitating burning bans. Category D3 means “extreme drought” and is represented by the color red on the drought map. There will be dust and sand storms as well as huge crop yield reductions.
The last category is D4 and means “exceptional drought” and is represented by a dark red color on the drought map. These conditions lead to significant financial losses in the seafood, forestry, tourism and agricultural sectors.
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