In light of the recent severe storms that battered Texas beginning July 2, the U.S. Small Business Administration (SBA) is stepping up to assist small businesses and nonprofit organizations in affected areas. Following President Donald J. Trump’s disaster declaration on July 6, a range of low-interest federal disaster loans is now available to help those impacted, aiming to stabilize and empower local economies in the wake of this disaster.
Kelly Loeffler, SBA Administrator, expressed the agency’s commitment to aiding recovery efforts, stating, “As we pray for those impacted by the devastating flooding in Texas… the agency is now offering physical and economic injury disaster loans in Texas Hill Country.” This initiative not only provides financial relief but also emphasizes the importance of teamwork among various government levels and organizations in the recovery process.
Small businesses in Kerr County can apply for physical disaster loans, which may cover up to $2 million for repairing or replacing damaged property, equipment, and inventory. For neighboring counties—Bandera, Edwards, Gillespie, Kendall, Kimble, and Real—only Economic Injury Disaster Loans (EIDL) are available, which help fund working capital even when no physical damage has occurred.
These loans can serve as a lifeline for small business owners who need immediate assistance. EIDLs can be used to cover fixed debts, payroll, and other operating expenses that a business might struggle to meet due to the disaster. "One distinct advantage of SBA’s disaster loan program is the opportunity to fund upgrades to reduce the risk of future storm damage,” added Chris Stallings, Associate Administrator of the Office of Disaster Recovery and Resilience at the SBA. He encourages businesses to utilize this program to not only recover but also to enhance resilience against future disasters.
To further assist, the SBA allows applicants to increase their loans by up to 20% of verified physical damages for mitigation purposes. Upgrades could include weatherproofing measures like insulating walls or installing storm windows—steps that not only secure properties but may also lower insurance costs long-term.
Interest rates on these loans are notably accessible, beginning at 4% for small businesses, 3.625% for private nonprofits, and 2.813% for homeowners and renters. With repayment terms extending up to 30 years and a 12-month deferment on accruing interest, these loans offer a much-needed buffer for small business owners focused on rebuilding.
As businesses begin to consider these financial options, they may encounter challenges. The application process requires documentation and financial statements, which can be daunting for those already overwhelmed by the aftermath of a disaster. However, one-on-one assistance will soon be available through Federal-State Disaster Recovery Centers opening in the affected area, providing targeted support for applicants.
Business owners interested in applying for these loans can do so online at sba.gov/disaster. Alternatively, they can reach out to the SBA Customer Service Center at (800) 659-2955, where additional assistance will be provided. Deadlines for applications are September 4, 2025, for physical property damage and April 6, 2026, for economic injury applications.
While the aftermath of natural disasters can be overwhelming, the SBA’s proactive approach offers a pathway to recovery for Texas small businesses. By leveraging available resources, businesses not only work toward rebuilding but also positioning themselves for resilience in the face of future crises. For more detailed information about these initiatives, visit the original press release at SBA Disaster Assistance.
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