Low-interest federal disaster loans are now available to Texas businesses and residents as a result of President Biden’s major disaster declaration. The declaration covers 77 Texas counties as a result of the severe winter storms that began on Feb. 11. Lower Rio Grande Valley District counties included in declaration are Aransas, Cameron, Hidalgo, Nueces and San Patricio.
“SBA is strongly committed to providing Texas with the most effective and customer-focused response possible and with access to federal disaster loans to help businesses and residents affected by this disaster,” said U.S. Small Business Administration’s acting Administrator Tami L. Perriello. “Getting our businesses and communities up and running after a disaster is our highest priority at SBA.”
SBA is currently running a Virtual Business Recovery Center to provide personalized assistance to business owners. In addition, SBA is providing a Virtual Disaster Loan Outreach Center to help homeowners and renters. Customer Service Representatives are available to business owners and individuals to answer questions about SBA’s disaster loan program. They can also explain the application process and help each person complete their electronic loan application.
Virtual Business Recovery Center and Virtual Disaster Loan Outreach Center hours are Monday – Friday, 7 a.m. – 7 p.m. CDT. They can be reached at FOCWAssistance@sba.gov and 800-659-2955.
About The Loans
Businesses of all sizes and private nonprofit organizations may borrow up to $2 million to repair or replace damaged or destroyed real estate, machinery and equipment, inventory and other business assets. SBA can also lend additional funds to businesses and homeowners to help with the cost of improvements to protect, prevent or minimize the same type of disaster damage from occurring in the future.
For small businesses, small agricultural cooperatives, small businesses engaged in aquaculture and most private nonprofit organizations of any size, SBA offers Economic Injury Disaster Loans to help meet working capital needs caused by the disaster. Economic injury assistance is available to businesses regardless of any property damage.
Disaster loans up to $200,000 are available to homeowners to repair or replace damaged or destroyed real estate. Homeowners and renters are eligible for up to $40,000 to repair or replace damaged or destroyed personal property.
Interest rates can be as low as three percent for businesses and two percent for private nonprofit organizations. Interest rates for homeowners and renters are as low as 1.25 percentwith terms up to 30 years. Loan amounts and terms are set by SBA and are based on each applicant’s financial condition.
For consideration on all forms of disaster assistance, survivors must first contact the Federal Emergency Management Agency at disasterassistance.gov. Applicants may apply online, receive additional disaster assistance information and download applications at disasterloanassistance.sba.
Applicants may also contact SBA’s Customer Service Center at 800-659-2955 or disastercustomerservice@sba.