The U.S. Small Business Administration’s Disaster Field Operations Center-West has announced that they have approved more than $5 million in federal disaster loans for Texas businesses and residents impacted by severe storms and tornadoes in Texas.
$5 Million in EIDL Loans to Texas Businesses After March Tornadoes
The storms and tornadoes occurred around Bastrop, Grayson, Houston, Jack, Montague, Nacogdoches, Upshur and Williamson counties on March 21, causing considerable damage to residential and commercial properties. The SBA has now approved $163,200 for businesses and $4,921,000 for residents to help the communities affected by the severe weather rebuild and recover.
Tornadoes Bring Disaster to Texas
An outbreak of tornadoes first struck the Southern United States on March 21 and lasted two days before transitioning to the Eastern United States on March 23. It all began with multiple ‘supercell thunderstorms’ as well as severe squall lines in central Texas and southern Oklahoma. A total of 83 tornadoes then caused huge property damage as well as causing multiple deaths and injuries. Several of the tornadoes were rated EF2 and EF3 and are likely the ones that caused the most damage.
The disaster loans are available to eligible businesses based in Anderson, Angelina, Archer, Bastrop, Bell, Burnet, Caldwell, Camp, Cherokee, Clay, Collin, Cooke, Denton, Fannin, Fayette, Grayson, Gregg, Harrison, Houston, Jack, Lee, Leon, Madison, Marion, Milam, Montague, Morris, Nacogdoches, Palo Pinto, Parker, Rusk, San Augustine, Shelby, Smith, Travis, Trinity, Upshur, Walker, Williamson, Wise, Wood and Young counties in Texas. The loans are also available for businesses in the Oklahoma counties of Bryan, Jefferson, Love and Marshall.
The interest rate of the loans has been set at 2.94% for businesses and 1.875% for private non-profit organizations, with the terms lasting up to 30 years.
SBA Director Confirms Loan Access
Director Tanya N. Garfield of the U.S. said: “Although the deadline to apply for property damage loans has expired, small businesses and most private non-profit organizations of any size may continue to apply for an Economic Injury Disaster Loan to help meet working capital needs caused by the disaster. Economic injury assistance is available regardless of whether the business or non-profit organization suffered any property damage.”
The SBA also explained the eligibility criteria, saying that the loans are for small non-farm businesses, small agricultural cooperatives, small businesses engaged in aquaculture and most private non-profit organizations of any size. These eligible organizations can qualify for an Economic Injury Disaster Loan of up to $2 million to ‘help meet financial obligations and operating expenses which could have been met had the disaster not occurred’.
The loans should be used to pay fixed debts, payroll, accounts payable and other bills that a business is struggling to pay because of the impact of the storms and tornadoes.
How to Apply for a Texas Disaster Loan
Applicants for the Texas disaster loans can apply online as well as access additional disaster assistance information and download applications at the Disaster Loan Assistance website.
If eligible, you can also call the SBA’s Customer Service Center at (800) 659-2955 or email [email protected] to receive more information on the disaster loan assistance. The deadline to submit an Economic Injury Disaster Loan application is February 6, 2023.
Get the latest headlines from Small Business Trends. Follow us on Google News.
More in: EIDL Loan