More disaster loans now available for struggling Texas and Oklahoma businesses

More disaster loans now available for struggling Texas and Oklahoma businesses
(Source: KFDA)
(Source: KFDA)

AMARILLO, TX (KFDA) - The U.S. Small Business Administration is now offering loans for businesses and nonprofits who have been economically impacted by severe weather.

Between May 1 and June 24, 2016,  29 counties throughout the Texas and Oklahoma Panhandles have seen high winds, flooding, hail and tornadoes, and those impacted by these weather events can now apply for this economic injury disaster loan.

"There were two to three days in May that were really busy weather days for Amarillo and neighboring counties," said Mike Gittinger, National Weather Service Warning Coordination Meteorologist. "On May 16, we issued 25 severe thunderstorm warnings. In the Texas and Oklahoma Panhandle areas there were 14 warnings on May 21 and 22."

Weather can impact businesses economically when conditions impair visitors traveling or by damaging local crops.

"For structures and cars the most of us are worried about the big two to three inch hail and for the farming community the smaller hail is what damages crops," said Gittinger. "This is because it falls in clusters. So, farmers will tell you that some of that smaller hail will do a lot more damage to their business than large hail does."

When farmers see damage to their crops it can determine what they will spend at locally owned businesses.

So, along with property damage small businesses and organizations can apply for a revenue damage loan from the Small Business Administration.

Businesses and nonprofit organizations of any size may qualify for this economic injury disaster loan of up to $2 million to help with operating expenses and meet financial means.

These loans have an interest rate of 4 percent for businesses and 2.625 percent for nonprofit organizations with a maximum term of 30 years.

This loan is completely for non-farm businesses and nonprofits. For all farming and ranching businesses who are looking for loans will have to contact the the Farm Services Agency about the U.S. Department of Agriculture assistance made available by the Secretary's declaration.

For more information on how to apply for these federal loans you can call Customer Service at (800) 659-2955 or visit the SBA's website. 

To apply for the loan the counties targeted specifically are as listed:

Primary Texas counties: Armstrong, Callahan, Clay, Coleman, Jack and Taylor.

Neighboring Texas counties: Archer, Briscoe, Brown, Carson, Concho, Donley, Eastland, Fisher, Gray, Jones, McCulloch, Montague, Nolan, Palo Pinto, Parker, Potter, Randall, Runnels, Shackelford, Swisher, Wichita, Wise and Young.

Neighboring Oklahoma counties: Cotton and Jefferson.

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