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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