In response to a Presidential disaster declaration issued on May 21, the U.S. Small Business Administration (SBA) has announced the availability of low-interest federal disaster loans for Texas small businesses, private nonprofit organizations, and residents affected by severe storms and flooding from March 26-28.
The declaration includes the Texas counties of Cameron, Hidalgo, Starr, and Willacy. Businesses and nonprofits can apply for business physical disaster loans with borrowing limits up to $2 million to repair or replace damaged real estate, machinery, equipment, inventory, and other assets.
Homeowners and renters may apply for home and personal property loans with limits up to $100,000 for replacing or repairing personal items like clothing and furniture. Homeowners have an additional option to borrow up to $500,000 for primary residence repairs.
Applicants might qualify for a loan increase of up to 20% of their verified physical damages for mitigation purposes. Eligible improvements include insulating pipes and walls, weather stripping doors and windows, and installing storm windows.
The SBA's Economic Injury Disaster Loan (EIDL) program is available to eligible small businesses, agricultural cooperatives, nurseries, and PNPs that suffered financial losses due to the disaster. These loans cover working capital needs even if no physical damage occurred.
“One distinct advantage of SBA’s disaster loan program is the opportunity to fund upgrades reducing the risk of future storm damage,” said Chris Stallings from the Office of Disaster Recovery and Resilience at the SBA. “I encourage businesses and homeowners to work with contractors and mitigation professionals.”
Interest rates start as low as 4% for small businesses, 3.62% for PNPs, and 2.75% for homeowners with terms extending up to 30 years. Interest does not accrue until one year after the first disbursement.
Federal-State Disaster Recovery Centers will provide assistance once they open in affected areas. For more information or assistance applying online visit sba.gov/disaster or contact SBA’s Customer Service Center at (800) 659-2955.
The deadline for applications related to physical property damage is July 21, 2025; economic injury applications are due by February 23, 2026.