The U.S. Small Business Administration (SBA) has announced the offering of low-interest federal disaster loans to small businesses and private nonprofit organizations in Texas that have experienced economic setbacks due to the ongoing drought that began on April 1. This provision aims to support businesses in a wide range of Texas counties, including Brown, Callahan, Coleman, and others.
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."
The SBA's Economic Injury Disaster Loan (EIDL) program provides working capital loans to small businesses, small agricultural cooperatives, nurseries, and private nonprofits. It is important to note that the SBA cannot extend these loans to agricultural producers, farmers, or ranchers, except for small aquaculture businesses.
Loans of up to $2 million are available with interest rates as low as 4% for small businesses and 3.625% for private nonprofits, with repayment terms extending up to 30 years. Borrowers benefit from deferred payments, with interest not accruing and payments not required until 12 months after the first loan disbursement. Loan amounts and terms are determined by evaluating the financial situation of each applicant.
Interested businesses and organizations can apply online at sba.gov/disaster. Alternatively, they can contact SBA’s Customer Service Center at (800) 659-2955 or email disastercustomerservice@sba.gov for more information. For those with hearing or speech disabilities, access via telecommunications relay services can be reached by dialing 7-1-1.
The deadline for submitting completed loan applications is December 8.