The U.S. Small Business Administration (SBA) has updated its disaster declaration for Texas, now offering low-interest federal disaster loans specifically to private nonprofit organizations in Bailey County. This development follows President Biden’s major disaster declaration on May 23, which was issued in response to severe storms, straight-line winds, tornadoes, and flooding that occurred between April 26 and June 5. Administrator Isabella Casillas Guzman emphasized that these financial resources are intended for private nonprofits delivering essential government services.
In addition to Bailey County, disaster loans are also accessible to private nonprofits in several other Texas counties, including Anderson, Austin, Bell, Harris, and Dallas. These organizations may obtain assistance for the repair or replacement of damaged properties, machinery, equipment, and inventory. The SBA can provide loans of up to $2 million, which can also include extra funding for improvements aimed at mitigating future disaster damage.
Francisco Sánchez Jr., associate administrator for the Office of Disaster Recovery and Resilience at the SBA, encouraged private nonprofits to reach out to the Texas Division of Emergency Management Recovery Division to participate in applicant briefings. These sessions will require nonprofits to share information about their operations, which will help FEMA evaluate whether they deliver essential governmental services and qualify as critical facilities. Eligible nonprofits may be able to access Public Assistance grants from FEMA and are urged to apply for SBA disaster loan assistance.
Moreover, the SBA is offering Economic Injury Disaster Loans to help cover working capital needs arising from the disaster. This funding can support fixed debts, payroll, and other expenses that cannot be paid due to the disaster’s effects, irrespective of property damage.
The loans carry an interest rate of 3.25% with terms of up to 30 years. Property damage applications must be submitted by July 22, 2024, while economic injury applications are due by February 24, 2025. Notably, interest will not begin to accrue until 12 months after the first disbursement, with repayment expected to start thereafter.
Applicants can submit their applications online through the SBA’s website or contact the SBA’s Customer Service Center for further assistance. Individuals with hearing impairments can access telecommunications relay services for support.