SBA Disaster News Release – SBA Economic Disaster Loans Available for Texas Small Businesses Due to Drought – The Gilmer Mirror
SACRAMENTO, Calif. — Non-farm small businesses in 107 counties in Texas and neighboring counties in New Mexico and Oklahoma are now eligible to apply for low-interest federal disaster loans from US Small Business Administration, Director Tanya N. Garfield of the SBA-West Disaster Field Operations Center announced. These loans compensate for economic losses due to reduced income caused by the drought in the following major counties which began on November 1, 2021.
Major Counties in Texas: Hays, Throckmorton, Titus, Tom Green, Trinity, Upshur, Upton, Uvalde, Val Verde, Van Zandt, Ward, Webb, Wheeler, Wichita, Wilbarger, Wilson, Winkler, Wise, Wood, Yoakum, Young, Zapata and Zavala;
Neighboring Texas counties: Andrews, Angelina, Archer, Atascosa, Bandera, Baylor, Bexar, Blanco, Caldwell, Camp, Clay, Cochran, Coke, Collingsworth, Comal, Concho, Cooke, Crane, Crockett, Denton, Dimmit, Donley, Duval , Ector, Edwards, Foard, Franklin, Frio, Gaines, Glasscock, Gonzales, Gray, Gregg, Guadalupe, Hardeman, Harrison, Haskell, Hemphill, Henderson, Hockley, Hopkins, Houston, Hunt, Irion, Jack, Jim Hogg, Karnes, Kaufman, Kinney, Knox, La Salle, Loving, Marion, Maverick, McMullen, Medina, Menard, Midland, Montague, Morris, Palo Pinto, Parker, Pecos, Polk, Rains, Reagan, Real, Red River, Reeves, Roberts, Runnels , San Jacinto, Schleicher, Shackelford, Smith, Starr, Stephens, Sterling, Sutton, Tarrant, Terrell, Terry, Travis and Walker;
Neighboring New Mexico County: Lea;
Neighboring counties of Oklahoma: Beckham, Cotton, Jackson, Roger Mills, Tillman.
“SBA eligibility covers both economic impacts on businesses dependent on farmers and ranchers who suffered agricultural production losses caused by the disaster and businesses directly affected by the disaster,” Garfield said.
Small non-agricultural businesses, small agricultural cooperatives, small businesses engaged in aquaculture, and most private non-profit organizations of any size may be eligible for economic disaster loans of up to $2 million for help meet financial obligations and operating expenses that could have been met had the disaster not occurred.
“Eligibility for these loans is based solely on the financial impact of the disaster and not on the actual property damage. These loans have an interest rate of 2.83% for businesses and 1.875% for private organizations not-for-profit, a maximum term of 30 years and are available to small businesses and most private non-profit organizations without the financial capacity to offset the negative impact without hardship,” Garfield said.
By law, the SBA makes economic disaster loans available when the United States Secretary of Agriculture designates an agricultural disaster. The Secretary declared this disaster on April 22, 2022.
Businesses whose primary business is agriculture or ranching are not eligible for SBA disaster relief. Agricultural businesses should contact the Farm Services Agency about the United States Department of Agriculture assistance made available by the Secretary’s Statement. However, nurseries are eligible for SBA disaster assistance in the event of a drought.