The U.S. Small Business Administration (SBA) is reminding small businesses and private nonprofit organizations in Texas of the approaching deadline to apply for federal disaster loans. These loans are intended to offset economic losses caused by the drought that began on October 8, 2024. The deadline for applications is June 16.
The disaster declaration includes several counties in Texas: Collin, Cooke, Delta, Denton, Fannin, Grayson, Lamar, and Red River. It also covers the Oklahoma counties of Bryan, Choctaw, Love, and Marshall.
Through this declaration, SBA’s Economic Injury Disaster Loan (EIDL) program is available to small businesses, small agricultural cooperatives, nurseries, 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 caused by the disaster even if there was no physical damage to the business or nonprofit. They may cover fixed debts, payrolls, accounts payable and other bills not paid due to the disaster.
“Through a declaration by the U.S. Secretary of Agriculture, SBA provides critical financial assistance to help communities recover,” said Chris Stallings from the Office of Disaster Recovery and Resilience at SBA. “We’re pleased to offer loans to small businesses and private nonprofits impacted by these disasters.”
Loan amounts can reach up to $2 million with interest rates as low as 4% for small businesses and 3.25% for private nonprofits. Terms can extend up to 30 years with no interest accruing or payments due until one year after the first loan disbursement. The SBA determines loan amounts and terms based on each applicant's financial condition.
Applications can be submitted online at sba.gov/disaster or through SBA’s Customer Service Center at (800) 659-2955 or via email at disastercustomerservice@sba.gov. For those who are deaf or hard of hearing or have a speech disability, telecommunications relay services can be accessed by dialing 7-1-1.
All completed loan applications must be submitted by June 16.