Small nonfarm businesses in 14 Texas counties are now eligible to apply for low-interest federal disaster loans to help offset economic losses caused by a drought that began on March 12. The U.S. Small Business Administration (SBA) announced this opportunity to support businesses affected by the ongoing drought.
Francisco Sánchez Jr., associate administrator for the Office of Disaster Recovery and Resilience, emphasized the availability of these loans to assist businesses in the affected counties. The loans are available to small nonfarm businesses, small agricultural cooperatives, small aquaculture businesses, and most private nonprofit organizations.
Businesses in primary counties such as Edwards, Kinney, Maverick, and Val Verde, as well as neighboring counties like Crockett, Dimmit, Kerr, and Uvalde, are eligible to apply for Economic Injury Disaster Loans (EIDL) of up to $2 million. These loans are designed to help meet financial obligations and operating expenses that could have been covered if the disaster had not occurred.
The SBA provides EIDLs when the U.S. Secretary of Agriculture designates an agricultural disaster, which was done on May 8 in this case. The deadline to apply for economic injury is January 8, 2025. Small businesses and nonprofits in the affected Texas counties are encouraged to apply promptly to take advantage of this financial assistance.
For more information and to apply for the loans, businesses can visit the SBA’s disaster assistance page or contact the Customer Service Center at (800) 659-2955. The loans have an interest rate of 4 percent for businesses and 3.25 percent for private nonprofit organizations, with repayment beginning 12 months after the initial disbursement.