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 the Welder Complex Fire, which occurred from March 4 to 9. This decision follows a disaster declaration issued in response to a request from Governor Greg Abbott on March 18.
The counties covered under this declaration include Aransas, Bee, Jim Wells, Live Oak, Nueces, Refugio, and San Patricio. Businesses and nonprofits can apply for business physical disaster loans with borrowing limits up to $2 million for repairing or replacing damaged real estate and other assets.
Homeowners may borrow up to $500,000 to repair their primary residences and renters are eligible for up to $100,000 for personal property losses. An additional loan increase of up to 20% is available for mitigation purposes.
Chris Stallings, associate administrator of the Office of Disaster Recovery and Resilience at the SBA stated: “When disasters strike, SBA’s Disaster Loan Outreach Centers play a vital role in helping small businesses and their communities recover.” These centers will assist with applications and provide recovery program information.
The Economic Injury Disaster Loan (EIDL) program is also accessible to eligible small businesses impacted by financial losses related to this disaster. EIDLs cater to working capital needs 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 extending up to 30 years. Payments begin one year after the first loan disbursement.
Starting March 21, SBA representatives will be available at the Disaster Loan Outreach Center in San Patricio County to guide applicants through the process. Walk-ins are welcome or appointments can be scheduled online.
Applications can be submitted online at sba.gov/disaster or inquiries directed via phone or email as provided in the release. Deadlines are May 19 for physical damage applications and December 19 for economic injury applications.