The U.S. Small Business Administration (SBA) has announced the availability of low-interest federal disaster loans for private nonprofit organizations in Texas affected by severe storms, straight-line winds, and flooding that began on July 2. The disaster declaration covers Kerr County in Texas.
Under this declaration, private nonprofits providing non-critical services of a governmental nature impacted by physical damages or financial losses related to the disaster are eligible to apply for business physical damage loans and Economic Injury Disaster Loans (EIDLs) from the SBA. Eligible organizations include food kitchens, homeless shelters, museums, libraries, community centers, schools, and colleges.
Private nonprofits may borrow up to $2 million to repair or replace damaged or destroyed real estate, machinery and equipment, inventory, and other business assets. Applicants may also be eligible for a loan increase of up to 20% of their physical damage for mitigation purposes.
EIDLs are available for working capital needs caused by the disaster even if there was no physical damage. These loans can be used to pay fixed debts, payroll, accounts payable, and other bills not paid due to the disaster.
“SBA loans help eligible small businesses and private nonprofits cover operating expenses after a disaster, which is crucial for their recovery,” said Chris Stallings, associate administrator of the Office of Disaster Recovery and Resilience at the SBA. “These loans not only help business owners get back on their feet but also play a key role in sustaining local economies in the aftermath of a disaster.”
Interest rates are as low as 3.625% for private nonprofits with terms up to 30 years. Interest does not begin to accrue until 12 months from the date of the first loan disbursement. Loan amounts and terms will be set based on each applicant’s financial condition.
The SBA encourages applicants to submit their loan applications promptly as they will be prioritized in order received. Applications can be submitted online at sba.gov/disaster or through SBA’s Customer Service Center at (800) 659-2955 or via email at disastercustomerservice@sba.gov. For telecommunications relay services dial 7-1-1.
The deadline for returning applications for physical property damage is September 4, 2025. The deadline for economic injury applications is April 6, 2026.