The U.S. Small Business Administration (SBA) has announced the availability of low-interest federal disaster loans for small businesses and private nonprofit organizations in Texas affected by drought conditions that began on April 22. The declaration includes the counties of Austin, Bastrop, Caldwell, Colorado, Fayette, Gonzales, Lavaca, Lee, and Washington.
The SBA's Economic Injury Disaster Loan (EIDL) program will support small businesses, small agricultural cooperatives, nurseries, and private nonprofits with financial losses due to the drought. However, agricultural producers such as farmers or ranchers are not eligible unless they operate small aquaculture enterprises.
EIDLs aim to cover working capital needs resulting from the disaster and can be used even if there is no physical damage to the business or nonprofit. These loans may assist with fixed debts, payroll obligations, accounts payable, and other expenses that remain unpaid due to the economic impact of the drought.
"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 receive loans up to $2 million with interest rates as low as 4% for small businesses and 3.62% for private nonprofits. The terms can extend up to 30 years. Interest does not accrue until 12 months after the first loan disbursement.
Applications can be submitted online at sba.gov/disaster or through contact with SBA’s Customer Service Center at (800) 659-2955 or via email at disastercustomerservice@sba.gov. Telecommunications relay services are available for individuals who are deaf or hard of hearing by dialing 7-1-1.
The deadline for submitting completed loan applications is January 5, 2026.