Special to The Dallas Examiner
EULESS – The U.S. Small Business Administration is offering low-interest federal disaster loans for working capital to Texas small businesses suffering substantial economic injury as a result of the Coronavirus, SBA Administrator Jovita Carranza announced today. SBA acted under its own authority, as provided by the Coronavirus Preparedness and Response Supplemental Appropriations Act that was recently signed by the president, to declare a disaster following a request received from Gov. Gregg Abbott.
The disaster declaration makes SBA assistance available in the entire state of Texas.
“SBA is strongly committed to providing the most effective and customer-focused response possible to assist Texas small businesses with federal disaster loans. We will be swift in our efforts to help these small businesses recover from the financial impacts of the Coronavirus,” Carranza said.
SBA Customer Service Representatives will be available to answer questions about SBA’s Economic Injury Disaster Loan program and explain the application process.
“Small businesses, private nonprofit organizations of any size, small agricultural cooperatives and small aquaculture enterprises that have been financially impacted as a direct result of the Coronavirus since Jan. 31, 2020, may qualify for Economic Injury Disaster Loans of up to $2 million to help meet financial obligations and operating expenses which could have been met had the disaster not occurred,” Carranza said.
“These loans may be used to pay fixed debts, payroll, accounts payable and other bills that can’t be paid because of the disaster’s impact. Disaster loans can provide vital economic assistance to small businesses to help overcome the temporary loss of revenue they are experiencing.”
Eligibility for Economic Injury Disaster Loans is based on the financial impact of COVID-19. The interest rate is 3.75% for small businesses. The interest rate for private nonprofit organizations is 2.75%. SBA offers loans with long-term repayments in order to keep payments affordable, up to a maximum of 30 years and are available to entities without the financial ability to offset the adverse impact without hardship.
“We encourage small businesses in Dallas/Fort Worth and surrounding areas to apply for this assistance to help their business during this difficult time. We are doing aggressive outreach within my district’s 72 Texas county territory to make sure businesses and nonprofits are aware of the Economic Injury Disaster Loans,” said Ahmad Goree, Public Information Officer for the SBA’s Dallas/Fort Worth District Office.
Goree stated that the following items should be submitted with the application:
- Loan application (SBA Form 5), completed and signed (this is electronic/online in the portal)
- Tax Information Authorization (IRS Form 4506-T), completed and signed by each applicant, each principal owning 20% or more of the applicant business, each general partner or managing member; and, for any owner who has more than 50% ownership in an affiliate business. Affiliates include, but are not limited to, business parents, subsidiaries, and/or other businesses with common ownership or management
- Complete copies, including all schedules, of the most recently filed Federal income tax returns for the applicant business; an explanation if not available
- Personal Financial Statement (SBA Form 413) completed, signed, and dated by the applicant, each principal owning 20% or more of the applicant business, and each general partner or managing member
- Schedule of Liabilities listing all fixed debts (SBA Form 2202 may be used) Please note for small business applicants only are no longer required to submit their copies of their tax return with the application as a filing requirement. Nonprofits will still need to provide tax returns.
Applicants may apply online, receive additional disaster assistance information and download applications at https://disasterloan.sba.gov/ela. Applicants may also call the SBA Customer Service Center at 800-659-2955 or email firstname.lastname@example.org for more information on 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
The deadline to apply for an Economic Injury Disaster Loan is Dec. 21. For more information about Coronavirus, visit http://www.coronavirus.gov. For more information about available SBA resources and services, visit http://www.SBA.gov/coronavirus.