The U.S. Small Business Administration (SBA) has announced the availability of low-interest federal disaster loans for Texas small businesses, private nonprofits, and residents affected by severe storms and straight-line winds on May 8. This announcement follows a disaster declaration issued in response to a request from Governor Greg Abbott on May 29.
The declaration covers several Texas counties: Brooks, Duval, Jim Wells, Kleberg, Live Oak, Nueces, and San Patricio. Businesses and nonprofits can apply for business physical disaster loans of up to $2 million to repair or replace damaged real estate, machinery, equipment, inventory, and other assets.
Homeowners and renters are eligible for home and personal property loans. Homeowners may borrow up to $500,000 to repair or replace their primary residence and up to $100,000 for personal property such as clothing and appliances.
Applicants might qualify for a loan increase of up to 20% of their physical damages for mitigation purposes. Eligible improvements include insulating pipes and installing storm windows.
The SBA’s Economic Injury Disaster Loan (EIDL) program is available for eligible small businesses and private nonprofit organizations impacted financially by the disaster. These loans cover working capital needs like fixed debts and payroll even if no physical damage occurred.
Interest rates are set at 4% for businesses, 3.62% for nonprofits, and 2.81% for homeowners with terms extending up to 30 years. Interest accrual begins one year after the first loan disbursement.
Chris Stallings from the SBA stated: “When disasters strike, SBA’s Disaster Loan Outreach Centers play a vital role in helping small businesses and their communities recover.” Starting June 4th, SBA representatives will be available at the Disaster Loan Outreach Center in Alice, TX to assist with applications.
Applications can be submitted online at sba.gov/disaster or through SBA's Customer Service Center at (800) 659-2955. The deadline for physical damage applications is August 1st while economic injury applications are due by March 2nd next year.