The U.S. Small Business Administration (SBA) has announced that low-interest federal disaster loans are now available to small businesses and private nonprofit (PNP) organizations in Texas affected by the winter drought beginning January 28. The loans are intended to cover economic losses stemming from the disaster.
The affected counties include Aransas, Austin, Bee, Brooks, Calhoun, Colorado, Concho, DeWitt, Dimmit, Duval, Fayette, Goliad, Gonzales, Hidalgo, Jackson, Jim Hogg, Jim Wells, Karnes, Kimble, Kleberg, La Salle, Lavaca, Live Oak, Mason, Matagorda, Maverick, McCulloch, McMullen, Menard, Nueces, Refugio, San Patricio, Schleicher, Starr, Sutton, Tom Green, Victoria, Webb, Wharton, and Zapata.
The SBA's Economic Injury Disaster Loan (EIDL) program will provide support to small businesses, small agricultural cooperatives, nurseries, and PNPs that have experienced financial losses due to the drought. However, the SBA does not provide disaster loans to agricultural producers, farmers, or ranchers unless they are small aquaculture enterprises.
EIDLs aim to meet working capital needs that have arisen because of the disaster and help cover fixed debts, payroll, accounts payable, and other obligations that could not be met due to the event. “Through a declaration by the U.S. Secretary of Agriculture, SBA provides critical financial assistance to help communities recover,” said Chris Stallings, associate administrator of the Office of Disaster Recovery and Resilience at the SBA. “We’re pleased to offer loans to small businesses and private nonprofits impacted by these disasters.”
Eligible applicants can secure loans up to $2 million. The interest rates for these loans are as low as 4% for small businesses and 3.625% for PNPs, with repayment terms extending up to 30 years. Importantly, interest does not begin to accrue, and payments are not required until 12 months following the initial loan disbursement. Loan amounts and conditions are determined based on the financial situation of each applicant.
Applications can be submitted online at sba.gov/disaster. Further inquiries can be directed to SBA’s Customer Service Center at (800) 659-2955, or via email at disastercustomerservice@sba.gov. People with hearing or speech disabilities can use telecommunications relay services by dialing 7-1-1. The deadline for loan submission is December 1.
The U.S. Small Business Administration is committed to guiding and supporting business owners as they navigate economic challenges, offering resources to help businesses start, grow, and recover from declared disasters. More information is available at www.sba.gov.