Small Business Economic Injury Disaster Loans
Small Business Economic Injury Disaster Loans

The Small Business Administration (SBA) has designated COVID-19 as a qualifying event for the provision of Economic Injury Disaster Loans to small businesses and private non-profits. As a result, on March 17, 2020, Governor Greg Abbott requested an emergency designation from the SBA for the entire state of Texas in order to allow Texas businesses to access the loan program. The SBA is considering the request, and if it grants an Economic Injury Disaster Declaration, small businesses in Texas will be able to apply for long-term, low-interest loans from the SBA.

Economic Injury Disaster Loans are intended to provide the necessary working capital to help small businesses survive until normal operations resume after a disaster. The SBA can provide up to $2 million to help meet financial obligations and operating expenses that could have been met had the disaster not occurred. Loan amounts are based on your actual economic injury and your company’s financial needs.

According to the SBA, if you have suffered substantial economic injury and are one of the following types of businesses located in a declared disaster area, you may be eligible for an SBA Economic Injury Disaster Loan:

  • Small Business
  • Small agricultural cooperative
  • Most private nonprofit organizations

Substantial economic injury means the business is unable to meet its obligations and to pay its ordinary and necessary operating expenses. Small businesses are those that meet the SBA’s size standards. A size standard, which is usually stated in number of employees or average annual receipts, represents the largest size that a business (including its subsidiaries and affiliates) may be to remain classified as a small business for SBA purposes.

The definition of “small” varies by industry. Below is the section of the SBA’s table of small business size standards that applies to the construction industry:

Industry Classification Code

Industry Title

Size standards in millions of dollars

Size standards in number of employees

Sector 23—Construction
Subsector 236—Construction of Buildings

236115

New Single-family Housing Construction (Except For-Sale Builders)

$39.5

 

236116

New Multifamily Housing Construction (except For-Sale Builders)

$39.5

 

236117

New Housing For-Sale Builders

$39.5

 

236118

Residential Remodelers

$39.5

 

236210

Industrial Building Construction

$39.5

 

236220

Commercial and Institutional Building Construction

$39.5

 
Subsector 237—Heavy and Civil Engineering Construction

237110

Water and Sewer Line and Related Structures Construction

$39.5

 

237120

Oil and Gas Pipeline and Related Structures Construction

$39.5

 

237130

Power and Communication Line and Related Structures Construction

$39.5

 

237210

Land Subdivision

$30.0

 

237310

Highway, Street, and Bridge Construction

$39.5

 

237990

Other Heavy and Civil Engineering Construction

$39.5

 

237990 (Exception)

Dredging and Surface Cleanup Activities

$30.0

 
Subsector 238—Specialty Trade Contractors

238110

Poured Concrete Foundation and Structure Contractors

$16.5

 

238120

Structural Steel and Precast Concrete Contractors

$16.5

 

238130

Framing Contractors

$16.5

 

238140

Masonry Contractors

$16.5

 

238150

Glass and Glazing Contractors

$16.5

 

238160

Roofing Contractors

$16.5

 

238170

Siding Contractors

$16.5

 

238190

Other Foundation, Structure, and Building Exterior Contractors

$16.5

 

238210

Electrical Contractors and Other Wiring Installation Contractors

$16.5

 

238220

Plumbing, Heating, and Air-Conditioning Contractors

$16.5

 

238290

Other Building Equipment Contractors

$16.5

 

238310

Drywall and Insulation Contractors

$16.5

 

238320

Painting and Wall Covering Contractors

$16.5

 

238330

Flooring Contractors

$16.5

 

238340

Tile and Terrazzo Contractors

$16.5

 

238350

Finish Carpentry Contractors

$16.5

 

238390

Other Building Finishing Contractors

$16.5

 

238910

Site Preparation Contractors

$16.5

 

238990

All Other Specialty Trade Contractors

$16.5

 

238990 (Exception)

Building and Property Specialty Trade Services

$16.5

 

Additional information about the size standards can be found here.

According to the Governor’s news release announcing the designation request, all small businesses who believe they may be eligible for an SBA Economic Injury Disaster Loan should visit the Texas Division of Emergency Management’s website.

Additional information about Economic Injury Disaster Loans can be found here

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