The U.S. Small Business Administration (SBA) has issued a reminder to eligible small businesses and private nonprofit organizations in Texas regarding the upcoming deadline of July 18, 2025, for applying for federal disaster loans. These low-interest loans aim to mitigate economic losses due to the drought that began on September 24, 2024.
The disaster declaration affects several Texas counties, including Cherokee, Gregg, Henderson, Hunt, Kaufman, Rains, Rusk, Smith, Upshur, Van Zandt, and Wood. The SBA’s Economic Injury Disaster Loan (EIDL) program is accessible to small businesses, small agricultural cooperatives, nurseries, and private nonprofits with financial losses directly linked to the drought. However, agricultural producers such as farmers and ranchers are generally not eligible unless they operate small aquaculture enterprises.
EIDLs can be utilized for working capital needs resulting from the disaster even if no physical damage occurred. These funds may cover fixed debts, payrolls, accounts payable, and other expenses unmet due to the drought's impact.
“Through a declaration by the U.S. Secretary of Agriculture, SBA provides critical financial assistance to help communities recover,” said Chris Stallings, associate administrator of the Office of Disaster Recovery and Resilience at the 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 extend up to 30 years with no accrued interest or payments required until one year after the initial loan disbursement. Loan amounts and terms are determined based on each applicant’s financial status.
Interested applicants can apply online at sba.gov/disaster or contact SBA’s Customer Service Center at (800) 659-2955 or via email at disastercustomerservice@sba.gov for more information on available disaster assistance. Telecommunications relay services are available for those who are deaf or hard of hearing by dialing 7-1-1.
Applications must be submitted by July 18.
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