The U.S. Small Business Administration (SBA) is urging small businesses and private nonprofit organizations in Texas to apply for federal disaster loans by April 28, 2025. These low-interest loans aim to mitigate economic losses caused by the drought that began on August 20, 2024.
The SBA disaster declaration covers the counties of Crane, Ector, Loving, Pecos, Reeves, Ward, and Winkler. Under the declaration, the Economic Injury Disaster Loan (EIDL) program is available to small businesses, agricultural cooperatives, nurseries, and private nonprofits. However, the SBA specifies that agricultural producers, farmers, and ranchers are not eligible unless they are small aquaculture enterprises.
These EIDLs provide working capital funds to address financial needs arising from the disaster. The assistance is available regardless of whether physical damage occurred. Funds can help cover fixed debts, payroll, accounts payable, and other outstanding bills.
"SBA loans help eligible small businesses and private nonprofits cover operating expenses after a disaster, which is crucial for their recovery," stated Chris Stallings, associate administrator of the SBA’s Office of Disaster Recovery and Resilience. "These loans not only help business owners get back on their feet but also play a key role in sustaining local economies in the aftermath of a disaster."
Loan amounts can reach up to $2 million, with interest rates as low as 4% for small businesses and 3.25% for private nonprofits, on terms up to 30 years. Interest begins accruing, and payments become due, one year after the first loan disbursement. The SBA determines loan amounts and terms based on each applicant's financial status.
Interested applicants can apply online at sba.gov/disaster, call the SBA’s Customer Service Center at (800) 659-2955, or email disastercustomerservice@sba.gov. Telecommunications relay services are available for applicants with hearing or speech disabilities by dialing 7-1-1.
Applications must be submitted by April 28 to be considered for relief.