SBA offers relief loans to Texas residents after December storm

SBA offers relief loans to Texas residents after December storm

Economics
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Destine Hicks-Lundy SBA White House Liaison to the Office of the Administrator | www.sba.gov

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The U.S. Small Business Administration (SBA) is urging businesses, nonprofit organizations, homeowners, and renters in Texas to apply for low-interest federal disaster loans by March 17, 2025. These loans aim to help offset losses from physical damage caused by severe storms, tornadoes, and straight-line winds on December 28, 2024.

The affected counties include Brazoria, Fort Bend, Galveston, Grimes, Harris, Liberty, Matagorda, Montgomery, San Jacinto, Walker, Waller, and Wharton.

Eligible businesses and nonprofits can apply for business physical disaster loans of up to $2 million to repair or replace damaged or destroyed real estate and other assets. Homeowners and renters may borrow up to $100,000 for personal property replacement or repair. Homeowners can also apply for up to $500,000 for primary residence repairs.

Interest rates are set at a minimum of 4% for small businesses, 3.625% for nonprofits, and 2.563% for homeowners and renters with terms extending up to 30 years. Payments start one year after the first loan disbursement date.

Applicants might qualify for an increase of up to 20% of their verified physical damages for mitigation purposes. Improvements could include insulating pipes and installing storm windows.

Economic Injury Disaster Loans (EIDLs) are also available to support working capital needs like ongoing expenses for small businesses and private nonprofit organizations regardless of physical damage suffered.

Applications can be submitted online at SBA.gov/disaster. Further assistance is available through SBA’s Customer Service Center at (800) 659-2955 or via email at disastercustomerservice@sba.gov. Telecommunications relay services can be accessed by dialing 7-1-1.

The deadline for applying for physical damage loans is March 17.

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