The U.S. Small Business Administration (SBA) has announced federal disaster loans for Texas small businesses, nonprofits, and residents affected by severe weather on April 4, including thunderstorms, straight-line winds, and tornadoes. This follows a disaster declaration requested by Governor Greg Abbott on April 17.
The affected areas, as covered by this declaration, include Texas counties such as Bowie, Camp, Cass, Marion, Morris, Red River, Titus, and Upshur. Businesses and nonprofits in these regions are eligible for business physical disaster loans and can borrow up to $2 million for repairing or replacing damaged real estate, machinery, inventory, and other assets.
Homeowners and renters can apply for home and personal property loans, with a borrowing limit of up to $100,000 for personal goods like clothing and appliances. Homeowners may also borrow up to $500,000 for primary residence restoration. Additionally, applicants can request a loan increase of up to 20% for mitigation measures, such as insulating pipes and installing storm windows.
The SBA’s Economic Injury Disaster Loan (EIDL) program extends assistance to small businesses, agricultural cooperatives, and private nonprofit organizations facing financial challenges due to the disaster. However, the program excludes agricultural producers, farmers, or ranchers, except for aquaculture enterprises. EIDLs serve as working capital loans to cover fixed costs, payroll, and other expenses resulting from the disaster impact.
Interest rates for these loans start at 4% for businesses, 3.625% for nonprofits, and 2.75% for homeowners and renters, with repayment terms extending up to 30 years. Loan repayment begins 12 months after the first disbursement.
Starting April 23, SBA representatives will be available at a Disaster Loan Outreach Center (DLOC) located at the Morris County Collaborative in Daingerfield, TX, to assist applicants. The center will operate from April 23 to May 14 on weekdays from 8 a.m. to 5 p.m.
Chris Stallings, associate administrator of the Office of Disaster Recovery and Resilience at the SBA, said, "When disasters strike, SBA’s Disaster Loan Outreach Centers play a vital role in helping small businesses and their communities recover."
Applicants can also apply online or contact the SBA's Customer Service Center for further assistance. People with hearing or speech disabilities can use telecommunications relay services by dialing 7-1-1. The deadlines for applications are June 20 for physical damage and January 21, 2026, for economic injury.
For more information about SBA disaster assistance, visit the SBA website.