The U.S. Small Business Administration (SBA) is reminding small businesses and private nonprofit organizations in Texas of the upcoming deadline to apply for federal disaster loans. These loans aim to offset economic losses due to drought conditions that began on September 10, 2024. The application deadline is July 7, 2025.
This declaration affects several counties in Texas, including Archer, Camp, Clay, Cottle, Crosby, Delta, Dickens, Fannin, Floyd, Franklin, Garza, Hopkins, Hunt, Jack, Kent, King, Lamar, Montague, Motley, Palo Pinto, Parker Rains Red River Stonewall Titus Wise Wood and Young.
Eligible entities under this declaration can access the SBA’s Economic Injury Disaster Loan (EIDL) program. This includes small businesses and private nonprofits with financial losses directly linked to the drought. However agricultural producers farmers or ranchers are not eligible unless they operate small aquaculture enterprises.
The EIDLs are intended for working capital needs resulting from the disaster even if there was no physical damage to the business or nonprofit. Funds from these loans can be used for fixed debts payroll accounts payable and other bills that could not be paid because of the drought.
Chris Stallings associate administrator of the Office of Disaster Recovery and Resilience at the SBA stated "Through a declaration by the U.S. Secretary of Agriculture SBA provides critical financial assistance to help communities recover 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 PNPs with repayment terms extending up to 30 years Interest does not accrue nor are payments required until one year after the first loan disbursement The specific loan amount and terms depend on each applicant's financial situation
To apply online visit sba.gov/disaster Applicants may also contact SBA’s Customer Service Center at (800) 659-2955 or email disastercustomerservice@sba.gov For those who are deaf hard of hearing or have a speech disability dial 7-1-1 for telecommunications relay services Completed applications must be submitted by July 7
About the U.S. Small Business Administration: The SBA supports American entrepreneurs providing resources necessary for starting growing expanding businesses or recovering from declared disasters Services are offered through a network of field offices partnerships with public/private organizations More information is available at www.sba.gov