The U.S. Small Business Administration (SBA) is reminding small businesses and private nonprofit organizations in Texas of an impending deadline to apply for federal disaster loans. These loans are aimed at mitigating economic losses caused by the drought that began on July 9, 2024. The deadline for applications is set for May 5, 2025.
Counties affected in Texas include Archer, Baylor, Crane, Crockett, Ector, Foard, Hardeman, Pecos, Upton, Ward, Wichita, and Wilbarger. Additionally, Jackson and Tillman counties in Oklahoma are included in the disaster declaration.
The SBA’s Economic Injury Disaster Loan (EIDL) program is available for small businesses, small agricultural cooperatives, nurseries, and private nonprofit organizations that have experienced financial losses directly related to the drought. It is noteworthy that agricultural producers, farmers, and ranchers are not eligible for these loans, except for small aquaculture enterprises.
The available loans are intended to cover working capital needs resulting from the disaster, including fixed debts, payroll, and accounts payable. Loan amounts can be up to $2 million, with interest rates of 4% for small businesses and 3.25% for private nonprofits. Payments are deferred for 12 months from the first loan disbursement date.
Chris Stallings, associate administrator of the Office of Disaster Recovery and Resilience at the SBA, stated, “Through a declaration by the U.S. Secretary of Agriculture, SBA provides critical financial assistance to help communities recover. We’re pleased to offer loans to small businesses and private nonprofits impacted by these disasters.”
Interested applicants can apply online at sba.gov/disaster or contact the SBA’s Customer Service Center at (800) 659-2955 for additional information. Telecommunication relay services are available for the deaf and hard of hearing by dialing 7-1-1. The completed loan applications must be submitted to the SBA by the deadline of May 5.
The SBA serves as a crucial resource for small businesses across America, providing support and resources to help entrepreneurs start and grow their businesses or recover from disasters. For further information about the SBA, individuals can visit www.sba.gov.