The U.S. Small Business Administration (SBA) has sent out a reminder that the deadline to apply for Economic Injury Disaster Loans for small non-farm businesses in eight Texas counties is approaching.
Deadline to Apply for EIDL Loans Due to Texas Drought Nears
Director Tanya N. Garfield of the SBA’s Disaster Field Operations Center-West Texas reminded small non-farm businesses of the August deadline dates to apply for an SBA federal disaster loan for economic injury. The low-interest loans were offered to offset economic losses from reduced revenues caused by drought.
Texas EIDL Deadlines Draw Near
The deadline for primary counties Fisher, Jones and Scurry is August 15, and is the same deadline 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 interest rate for the loans is as low as 2.83% for businesses and 1.875% for private non-profit organizations. The terms are up to 30 years, with the actual loan amounts and terms to be set by the SBA who base them on each applicant’s financial condition.
Helping Businesses 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 any size can apply for Economic Injury Disaster Loans of up to $2 million. The loans are to help such businesses meet working capital needs caused by the disasters.
“Economic Injury Disaster Loans may be used to pay fixed debts, payroll, accounts payable and other bills that cannot be paid because of the disaster’s impact,” said Director Garfield.
“SBA eligibility covers both the economic impacts on businesses dependent on farmers and ranchers that have suffered agricultural production losses caused by the disasters and businesses directly impacted by the disasters. Economic injury assistance is available regardless of whether the applicant suffered any property damage.”
Texas Drought Monitor Ratings
Texas has suffered many droughts over the years and has a specialized Drought Monitor service which updates every week to show the drought conditions across the Lone Star State.
The Drought Monitor uses a five-category system, with D0 meaning ‘abnormally dry’ conditions and represented by the color yellow on the drought map. These conditions usually result in forage germination being stunted, hay cutting being reduced and an increase in grass fires. The next category is D1 meaning ‘moderate drought’ and is represented by a light pink color on the drought map. These conditions stunt dryland crops and see an increase in wildfire frequency.
The next category up is D2 meaning ‘severe drought’ and is represented by the color orange on the drought map. Expect poor pasture conditions, and the increased danger of wildfire requiring burn 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 huge crop yield reductions.
The final category is D4 and means ‘exceptional drought’ and is represented by a dark red color on the drought map. These conditions bring about significant financial loss in the seafood, forestry, tourism and agriculture sectors.
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