SACRAMENTO, Calif. – In response to the disaster declaration issued by President Donald J. Trump on July 6, the U.S. Small Business Administration (SBA) announced the availability of low interest rate federal disaster loans to Texas small businesses, residents, and private nonprofit (PNP) organizations affected by severe storms, straight-line winds, and flooding beginning July 2.
The disaster declaration covers the primary Texas county of Kerr which is eligible for both physical disaster loans and Economic Injury Disaster Loans (EIDL) from the SBA. Small businesses and most PNP organizations in the following adjacent counties are eligible to apply only for SBA EIDLs: Bandera, Edwards, Gillespie, Kendall, Kimble, and Real.
“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,” said Kelly Loeffler, SBA Administrator. “As a result of President Trump’s immediate disaster declaration, the agency is now offering physical and economic injury disaster loans in Texas Hill Country. We are working closely with our state, local, and federal partners, and are committed to delivering robust relief and support as recovery begins in the days and months ahead.”
Businesses and PNP’s are eligible to apply for business physical disaster loans and may borrow up to $2 million to repair or replace disaster-damaged or destroyed real estate, machinery and equipment, inventory, and other business assets.
Homeowners and renters are eligible to apply for home and personal property loans and may borrow up to $100,000 to replace or repair personal property, such as clothing, furniture, cars, and appliances. Homeowners may apply for up to $500,000 to replace or repair their primary residence.
Applicants may be eligible for a loan increase of up to 20% of their physical damages, as verified by the SBA, for mitigation purposes. Eligible mitigation improvements include insulating pipes, walls and attics, weather stripping doors and windows, and installing storm windows to help protect property and occupants from future disasters.
“One distinct advantage of SBA’s disaster loan program is the opportunity to fund upgrades to reduce the risk of future storm damage,” said Chris Stallings, Associate Administrator of the Office of Disaster Recovery and Resilience at the SBA. “I encourage businesses and homeowners to work with contractors and mitigation professionals to improve their storm readiness while taking advantage of SBA’s mitigation loans.”
EIDLs are for working capital needs caused by the disaster and are available even if the business or PNP did not suffer any physical damage. They may be used to pay fixed debts, payroll, accounts payable, and other bills not paid due to the disaster.
Interest rates can be as low as 4% for small businesses, 3.625% for PNPs and 2.813% for homeowners and renters with terms up to 30 years. Interest does not begin to accrue, and payments are not due until 12 months from the date of the first loan disbursement. The SBA sets loan amounts and terms based on each applicant’s financial condition.
As soon as the Federal-State Disaster Recovery Centers open in the affected area, SBA will provide one-on-one assistance to disaster loan applicants. Additional information and details on the location of disaster recovery centers is available by calling the SBA Customer Service Center at (800) 659-2955.
To apply online, visit sba.gov/disaster. Applicants may also call SBA’s Customer Service Center at (800) 659-2955 or email disastercustomerservice@sba.gov for more information on SBA disaster assistance. For people who are deaf, hard of hearing, or have a speech disability, please dial 7-1-1 to access telecommunications relay services.
The filing deadline to return applications for physical property damage is Sept. 4, 2025. The deadline to return economic injury applications is April 6, 2026.
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About the U.S. Small Business Administration
The U.S. Small Business Administration helps power the American dream of business ownership. As the only go-to resource and voice for small businesses backed by the strength of the federal government, the SBA empowers entrepreneurs and small business owners with the resources and support they need to start, grow, expand their businesses, or recover from a declared disaster. It delivers services through an extensive network of SBA field offices and partnerships with public and private organizations. To learn more, visit www.sba.gov.