How North Texas small businesses can apply for economic disaster loans

Source: Small Business Administration/Community Impact Newspaper
Source: Small Business Administration/Community Impact Newspaper

Source: Small Business Administration/Community Impact Newspaper

For small business owners seeking disaster loans during the coronavirus pandemic, local financial aid organizers have one clear message: apply immediately.

The Small Business Administration is making its economic injury disaster loan available to small businesses in virtually every industry starting March 27, said Bob Siffermann, the chair of Fort Worth's SCORE chapter–an SBA affiliate.

Qualifying small businesses and nonprofits can borrow up to $2 million, Siffermann said in a phone call with local business owners. Any borrowed amounts greater than $25,000 may require some form of collateral in business property, but applicants won't necessarily be denied if they do not have collateral, he said.

"It is first-in-first-out," Siffermann said. "The sooner you can .... get the application in, the faster you can get ... a loan amount ... from the SBA."

The free-to-apply loan is backed by the U.S. Treasury, meaning applicants do not have to apply through a bank. Siffermann said they can simply send the necessary documents through SBA's website:

Some of the basic criteria for applicants include an acceptable credit history, a demonstrated ability to eventually repay the loan and a requirement that the business is located in a disaster-declared county, according to the SBA.

"The SBA will not necessarily decline a loan for lack of collateral, but may require some additional information or some additional pledges from you to provide that loan," Siffermann said.

Linda Williams, an SBA economic development specialist, stressed the importance of compiling all the necessary documents in advance.

"The goal traditionally is about two weeks processing time on this," she said. "But we're at the very ... beginning, actually, of a very large disaster. So [our director] is estimating to allow about three or four weeks."

The key documents to have completed and dated include: the SBA loan application (Form 5); tax information authorization (Form 4506-T); personal financial statements (Form 413); schedule of liabilities (Form 2202); and a complete copy of the most recent Federal Income Tax Return.

Meanwhile, on March 25, the U.S. Senate sent to the U.S. House of Representatives a $2 trillion stimulus package that aims to pump billions into small businesses. Williams said she was not aware if the economic injury disaster loan would be affected by the bill.

Some of the qualifying businesses include hotels, recreational facilities, charter boats, manufacturers, sports vendors, owners of rental property, restaurants, retailers, souvenir shops, travel agencies and wholesalers, among others.

Some of the ineligible businesses include agricultural enterprises, religious organizations, charitable organizations, casinos, race tracks and any other businesses that derive more than one third of their annual gross revenue from gambling activities, according to the SBA.
By Gavin Pugh
Gavin has reported for Community Impact Newspaper since June 2017. His beat has included Dallas Area Rapid Transit, public and higher education, school and municipal governments and more. He now serves as the editor of the Grapevine, Colleyville, Southlake edition.


The Texas Central rail connection from Dallas to Houston will feature a bullet train similar to this one. (Courtesy Texas Central Partners/Community Impact Newspaper)
Texas Supreme Court declines to review high-speed rail case, freeing company up to use eminent domain

Texas Central, the company looking to build a 236-mile high-speed rail line connecting Houston and Dallas, has been given a big win in an ongoing legal battle over whether the company is legally recognized as a "railroad company" under state law.

Texas Central has signed a $16 billion contract with Webuild to lead the civil construction team that will build the train. (Rendering courtesy Texas Central)
Texas Central signs $16B construction contract for high-speed rail project

Texas Central could be one step closer to starting construction.

The Electric Reliability Council of Texas issued a call for Texans to conserve energy June 14. (Iain Oldman/Community Impact Newspaper)
ERCOT asks Texans to conserve energy with generation outages 2.5 times higher than normal

"This is unusual for this early in the summer season," said Woody Rickerson, ERCOT vice president of grid planning and operations, in a news release.

Gov. Greg Abbott, center signed Senate Bills 2 and 3 into law June 8 in response to the devastating winter storm last February. (Trent Thompson/Community Impact Newspaper)
Gov. Abbott signs bills to reform ERCOT and weatherize Texas power grid

The bills will go into effect Sept. 1 and aim to reform ERCOT leadership and increase accountability and communication among power agencies.

The cost of a month’s supply of insulin for insured Texans will no longer exceed $25, according to a bill that is on its way to becoming state law. (Courtesy Peakpx)
Texas Legislature caps insulin price at $25 a month for the insured

The cost of insulin will not exceed $25 per month per prescription once this bill is signed into law.

The “Click It or Ticket” enforcement period across Texas roads will start on May 24. (Courtesy Adobe Stock)
TxDOT will launch annual ‘Click It or Ticket’ campaign Monday, May 24

The campaign comes after a 2020 that saw a 16% increase in deaths of unbuckled motorists.

Public schools cannot require students, teachers, parents and other staff members or visitors to wear masks after June 4, Gov. Greg Abbott declared in an executive order issued May 18. (Courtesy Adobe Stock)
Public schools can't require students, staff to wear masks after June 4, Gov. Abbott says

"Texans, not government, should decide their best health practices, which is why masks will not be mandated by public school districts or government entities," Gov. Greg Abbott said.

Effective June 26, unemployed Texans will no longer be eligible to receive the $300 weekly unemployment supplement from the Federal Pandemic Unemployment Compensation program. (Courtesy Adobe Stock)
Gov. Greg Abbott announces end-date for Texans to receive federal pandemic-related unemployment benefits

Effective June 26, unemployed Texans will no longer be eligible to receive the $300 weekly unemployment supplement from the Federal Pandemic Unemployment Compensation program.

CDC ends all mask requirements for fully vaccinated people

The guidance states fully vaccinated people do not need to wear masks indoors or outdoors.

Residents will have until May 2023 to obtain a Real ID. (Courtesy Adobe Stock)
US Department of Homeland Security extends Real ID deadline until 2023

Drivers will have until May 2023 to get the Real ID, which will be required for adults boarding a U.S. commercial flight.

Susan Bailey was elected president of the American Medical Association in June 2020. (Courtesy American Medical Association)
'I am convinced we will beat COVID': American Medical Association President Susan Bailey discusses vaccine successes, myths, challenges

Bailey was elected president of the American Medical Association in June 2020. Much of the organization's focus during that time has been on vaccine transparency and distribution.

Texas will add two seats in the U.S. House of Representatives in 2022. (Community Impact Newspaper file photo)
Texas is the only state adding two U.S. House districts, and it just missed out on a third

Seven U.S. House seats will shift from state to state, as Texas goes from 36 to 38 districts beginning with the 2022 elections.