The U.S. Small Business Administration (SBA) has issued a reminder to small businesses and private nonprofit organizations in Texas about the upcoming deadline for applying for federal disaster loans. These loans aim to offset economic losses due to the drought that began on July 9, 2024. The application deadline is set for March 17, 2025.
This disaster declaration includes several counties: Coke, Concho, Crockett, Irion, Kimble, Menard, Reagan, Runnels, Schleicher, Sterling, Sutton, and Tom Green. Under this declaration, the SBA’s Economic Injury Disaster Loan (EIDL) program is accessible to eligible small businesses and private nonprofits that experienced financial setbacks directly related to the drought. However, agricultural producers such as farmers and ranchers are not eligible unless they operate small aquaculture enterprises.
EIDLs are intended to cover working capital needs caused by the drought and are available even if there was no physical damage to the business or nonprofit organization. These loans can be used for fixed debts, payroll expenses, accounts payable, and other bills that would have been covered if not for the disaster.
Eligible applicants can borrow up to $2 million with interest rates of 4% for small businesses and 3.25% for private nonprofits. The loan terms can extend up to 30 years. Interest will not accrue until one year after the first disbursement of funds.
To apply online or seek more information about SBA disaster assistance programs, visit SBA.gov/disaster or contact their Customer Service Center at (800) 659-2955. Those who are deaf or hard of hearing can access services via telecommunications relay services by dialing 7-1-1.
Completed loan applications must be submitted by March 17.