The U.S. Small Business Administration (SBA) has announced the availability of low-interest federal disaster loans for Texas businesses, nonprofits, and residents affected by severe weather on March 4. This decision follows a disaster declaration issued in response to a request from Governor Greg Abbott on March 14.
The declaration includes the counties of Collin, Dallas, Denton, Ellis, Kaufman, Rockwall, and Tarrant. Businesses and nonprofits can apply for business physical disaster loans up to $2 million to repair or replace damaged assets. Homeowners and renters may borrow up to $100,000 for personal property repairs and up to $500,000 for primary residence repairs.
Applicants may qualify for a loan increase of up to 20% of their verified physical damages for mitigation purposes. "One distinct advantage of SBA’s disaster loan program is the opportunity to fund upgrades reducing the risk of future storm damage," said Chris Stallings, associate administrator of the Office of Disaster Recovery and Resilience at the SBA.
The Economic Injury Disaster Loan (EIDL) program is also available for eligible small businesses and private nonprofit organizations impacted financially by the disaster. These loans cover working capital needs caused by the event even if no physical damage occurred.
Interest rates are set at 4% for businesses, 3.625% for nonprofits, and 2.75% for homeowners and renters with terms up to 30 years. Interest accrual and payments begin 12 months after the first loan disbursement.
Starting Monday, March 24, SBA customer service representatives will be available at the Irving Disaster Loan Outreach Center (DLOC) to assist with applications. The center is located at Lively Pointe Youth Center in Irving, Texas.
To apply online or get more information about SBA disaster assistance, visit sba.gov/disaster or contact SBA’s Customer Service Center at (800) 659-2955. Deadlines are May 19 for physical damage applications and December 19 for economic injury applications.