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Reminder: Gaines Businesses Have 1 Month Left to Apply for SBA Disaster Loans

By: 
Sentinel Staff
Monday, January 7, 2019

SACRAMENTO, Calif. – Gaines County business owners are being reminded they have until Feb. 5 to apply for U.S. Small Business Administration federal disaster loans, which were made available as a result of drought conditions in the spring and early summer months of last calendar year.
According to a press release from the SBA, the low-interest loan opportunities are available to business operations in Gaines County, as well as 16 other counties, which include: Andrews, Crane, Ector, Pecos, Upton, Brewster, Crockett, Glasscock, Jeff Davis, Martin, Midland, Reagan, Reeves, Terrell, Ward and Winkler counties.

Additionally, Lea County, N.M. was also included in the disaster loan designation, according to the press release.

According to Tanya N. Garfield, with the U.S. Small Business Administration, small nonfarm businesses, small agricultural cooperatives, small businesses engaged in aquaculture and most private nonprofit organizations of any size may apply for Economic Injury Disaster Loans of up to $2 million to help meet working capital needs caused by the disaster. 

“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 Garfield.

“SBA eligibility covers both the economic impacts on businesses dependent on farmers and ranchers that have suffered agricultural production losses caused by the disaster and businesses directly impacted by the disaster. Economic injury assistance is available regardless of whether the applicant suffered any property damage,” Garfield added.

The interest rate is 3.61-percent for businesses and 2.5-percent for private nonprofit organizations with terms up to 30 years. Loan amounts and terms are set by SBA and are based on each applicant’s financial condition.

By law, SBA makes Economic Injury Disaster Loans available when the U.S. Secretary of Agriculture designates an agricultural disaster. The Secretary declared this disaster on June 5, 2018.

Businesses primarily engaged in farming or ranching are not eligible for SBA disaster assistance. Agricultural enterprises should contact the Farm Services Agency about the U.S. Department of Agriculture assistance made available by the Secretary’s declaration. However, nurseries are eligible for SBA disaster assistance in drought disasters.

Applicants may apply online, receive additional disaster assistance information and download applications at https://disasterloan.sba.gov/ela. Applicants may also call SBA’s Customer Service Center at (800) 659-2955 or email disastercustomerservice@sba.gov for more information on SBA disaster assistance. Individuals who are deaf or hard of hearing may call (800) 877-8339. Completed applications should be mailed to U.S. Small Business Administration, Processing and Disbursement Center, 14925 Kingsport Road, Fort Worth, TX  76155.

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