In response to a disaster declaration by President Donald J. Trump on July 6, the U.S. Small Business Administration (SBA) has announced the availability of low-interest federal disaster loans for Texas small businesses, residents, and private nonprofit organizations affected by severe storms and flooding that began on July 2.
The declaration covers Kerr County in Texas, which is eligible for both physical disaster loans and Economic Injury Disaster Loans (EIDL) from the SBA. Adjacent counties including Bandera, Edwards, Gillespie, Kendall, Kimble, and Real are eligible to apply solely for EIDLs.
Kelly Loeffler, SBA Administrator, stated: “As we pray for those impacted by the devastating flooding in Texas, as well as our first responders, the SBA is mobilizing to provide critical on-the-ground resources necessary for recovery.” She added that due to President Trump's immediate disaster declaration, the agency is offering both physical and economic injury disaster loans in Texas Hill Country.
Businesses and private nonprofits can apply for business physical disaster loans up to $2 million to repair or replace damaged real estate and other assets. Homeowners may borrow up to $500,000 for primary residence repairs while renters can apply for up to $100,000 for personal property replacement.
Applicants might be eligible for a loan increase of up to 20% of their verified physical damages for mitigation purposes. Chris Stallings from the SBA noted: “One distinct advantage of SBA’s disaster loan program is the opportunity to fund upgrades to reduce the risk of future storm damage.”
EIDLs cater to working capital needs caused by disasters and are available even if no physical damage occurred. Interest rates start at 4% for small businesses and vary slightly lower for nonprofits and homeowners with terms extending up to 30 years.
SBA will offer one-on-one assistance at Federal-State Disaster Recovery Centers once they open in affected areas. For more information or application assistance, individuals can contact the SBA Customer Service Center or visit sba.gov/disaster.
The deadline for submitting applications related to physical property damage is September 4, 2025. The deadline for economic injury applications extends until April 6, 2026.