The U.S. Small Business Administration (SBA) has issued a reminder to small businesses and private nonprofit organizations in Texas about the upcoming deadline to apply for federal disaster loans. These loans are intended to offset economic losses resulting from the drought that began on August 13, 2024. The deadline for applications is June 9.
This disaster declaration affects several counties in Texas, including Armstrong, Briscoe, Childress, Collin, Collingsworth, Cottle, Crosby, Delta, Dickens, Donley, Fannin, Floyd, Gray, Grayson, Hall, Hunt, King, Lamar, Motley, Swisher and Wheeler. It also covers Oklahoma counties Beckham, Bryan and Harmon.
The SBA's Economic Injury Disaster Loan (EIDL) program is available under this declaration. Eligible entities include small businesses and private nonprofits with financial losses directly related to the drought. However, agricultural producers such as farmers or ranchers are not eligible unless they operate small aquaculture enterprises.
These loans can be used for working capital needs arising from the disaster and are available even if there was no physical damage to the business or nonprofit organization. Funds may cover fixed debts like payroll and accounts payable.
Chris Stallings of the SBA's Office of Disaster Recovery and Resilience stated: “Through a declaration by the U.S. Secretary of Agriculture, SBA provides critical financial assistance to help communities recover.” He added that they are pleased to offer these loans to affected entities.
Loan amounts can reach up to $2 million with interest rates starting at 4% for small businesses and 3.25% for private nonprofits. Terms can extend up to 30 years with payments deferred until 12 months after the first loan disbursement. Loan terms depend on each applicant’s financial condition.
Applications can be submitted online at sba.gov/disaster or by contacting SBA’s Customer Service Center at (800) 659-2955 or via email at disastercustomerservice@sba.gov. Telecommunications relay services are available by dialing 7-1-1 for those who need it.
Completed loan applications must be submitted by June 9.