The Small Business Administration announced that the Economic Injury Disaster Loans are now available in Texas.
Economic Injury Disaster Loans for Businesses in Texas
Small businesses in Texas can now avail of the Economic Injury Disaster Loans, according to the Small Business Administration (SBA). Nearly 200 Texas counties qualify for this program including the Brazos Valley.
In a published article in KBTX, Susheel Kumar of the U.S. Small Business Administration said, “It’s important to support small businesses and when there is any type of natural disaster, the need for capital access gets even more acute. The SBA worked with several other federal agencies to request these economic disaster injury loan funds.”
Moreover, the U.S. Secretary of Agriculture declared an agricultural disaster that impacted 194 small nonfarm businesses in Texas counties. The Economic Injury Disaster Loans are offered after the excessive heat that occurred May 1 – Sept. 30, 2022.
Loan Eligibility Restrictions
According to a published report in KRHD, the following are the eligibilities for the Economic Injury Disaster Loans:
- The applicant’s business must be located in the declared disaster area.
- Only uninsured or otherwise uncompensated disaster losses are eligible.
- The economic injury must have been the direct result of the declared disaster.
- Nurseries are only eligible for economic injury caused by declared drought disasters.
- By law, agricultural enterprises such as farmers and ranchers are not eligible for any type of SBA assistance.
- Applicants who have not complied with the terms of previous SBA loans are not eligible. This includes borrowers who did not maintain flood and/or hazard insurance on previous SBA loans.
- Loan assistance is available only to the extent the business and its owners cannot meet necessary financial obligations due to the disaster. This determination is made by SBA.
Furthermore, small businesses that will qualify can apply for up to $2 million to help meet their financial obligations, expenses, and to continue the business operation.