The U.S. Small Business Administration (SBA) has amended its disaster declaration for Texas, making low-interest federal disaster loans available to specific private nonprofit organizations in Bailey County. This follows President Biden’s May 23 major disaster declaration due to severe storms, straight-line winds, tornadoes, and flooding from April 26 to June 5. Administrator Isabella Casillas Guzman announced that these loans are for private nonprofits providing essential government services.
The disaster loans are also available in many other Texas counties, including Anderson, Austin, Bell, Harris, and Dallas. Private nonprofits in these areas can receive assistance for repairing or replacing damaged property, machinery, equipment, and inventory. The SBA can lend up to $2 million for these repairs, including additional funds for improvements to prevent future disaster damage.
Francisco Sánchez Jr., associate administrator for the Office of Disaster Recovery and Resilience at the SBA, urged private nonprofits to contact the Texas Division of Emergency Management Recovery Division for information on applicant briefings. During these briefings, nonprofits must provide details about their organizations. FEMA will use this information to determine if the nonprofits offer essential governmental services and qualify as critical facilities. Eligible nonprofits may receive Public Assistance grants from FEMA for their costs, and all are encouraged to apply for SBA disaster loan assistance.
Additionally, the SBA offers Economic Injury Disaster Loans for working capital needs caused by the disaster. These loans can cover fixed debts, payroll, and other bills that can’t be paid due to the disaster’s impact. Economic injury assistance is available regardless of property damage.
The interest rate for these loans is 3.25 percent, with terms up to 30 years. Property damage applications are due by July 22, 2024, and economic injury applications by February 24, 2025. Interest does not accrue until 12 months after the first loan disbursement, and repayment begins 12 months after disbursement.
Applicants can apply online at SBA.gov/disaster or contact SBA’s Customer Service Center at (800) 659-2955 for more information. Those who are deaf, hard of hearing, or have a speech disability can access telecommunications relay services by dialing 7-1-1.
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This article, "SBA Amends Disaster Declaration, Offers Loans to Texas Nonprofits" was first published on Small Business Trends
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