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 since March 18. The declaration includes several counties in Texas and Oklahoma.
The SBA's Economic Injury Disaster Loan (EIDL) program is accessible to small businesses, small agricultural cooperatives, nurseries, and private nonprofits that have experienced financial losses due to the drought. However, agricultural producers, farmers, or ranchers are not eligible unless they are small aquaculture enterprises.
EIDLs can be used for working capital needs caused by the disaster and do not require physical damage to qualify. The loans can cover 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.” He added: “We’re pleased to offer loans to small businesses and private nonprofits impacted by these disasters.”
Eligible applicants can receive 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 with no interest accruing or payments due until 12 months after the first loan disbursement. Loan amounts and terms depend on each applicant’s financial condition.
Applications can be submitted online at sba.gov/disaster or through SBA’s Customer Service Center via phone or email. Those who are deaf or hard of hearing may use telecommunications relay services by dialing 7-1-1.
Completed loan applications must be submitted by February 2, 2026.
The U.S. Small Business Administration aims to support entrepreneurs with resources necessary for business recovery from declared disasters through its network of field offices and partnerships with various organizations.