The U.S. Small Business Administration (SBA) is issuing an important reminder to eligible small businesses and private nonprofit (PNP) organizations in Texas: the deadline to apply for low-interest federal disaster loans is approaching fast. With the Feb. 18, 2025 deadline just around the corner, those affected by the severe storms, straight-line winds, tornadoes, and flooding that occurred between April 26 and June 5, 2024, are urged to submit their applications promptly.

The disaster declaration encompasses numerous Texas counties, including Anderson, Angelina, Aransas, Austin, and many others (full list available on SBA.gov/disaster), as well as several parishes in Louisiana and counties in Oklahoma. This widespread disaster affected countless small businesses and organizations, prompting the need for financial assistance to recover from economic losses.

Under this declaration, the SBA’s Economic Injury Disaster Loan (EIDL) program offers a lifeline to eligible small businesses, small agricultural cooperatives, nurseries, and PNPs that have suffered financial setbacks due to the disaster. It’s crucial to note that the SBA cannot provide disaster loans to agricultural producers, farmers, or ranchers, except for those engaged in aquaculture.

The EIDLs aim to address working capital needs caused by the disaster, even if the business did not suffer any physical damage. The loans can be used to pay for fixed debts, payroll, accounts payable, and other bills that would have been paid had the disaster not occurred. This financial support is vital to sustaining local economies during challenging times.

“Working capital loans from the SBA are essential to eligible small businesses affected by the incident,” stated Francisco Sánchez, Jr., associate administrator for the Office of Disaster Recovery and Resilience at the SBA. “These loans help sustain local economies when a disaster occurs.”

The loan amounts can be substantial, reaching up to $2 million with interest rates of 4% for small businesses and 3.25% for PNPs. Terms extend up to 30 years, with no interest accruing or payments due until 12 months from the date of the first loan disbursement. The loan amounts and terms are determined based on each applicant’s financial condition.

The SBA’s disaster loan program has been replenished through the American Relief Act of 2025, signed into law by President Biden on December 21, 2024. This ensures continued support for businesses in need. SBA encourages applicants to submit their loan applications without delay. Applications will be prioritized in the order they are received, and the SBA is committed to processing them as efficiently as possible.

For more information and to apply online, visit SBA.gov/disaster. Applicants can also contact the SBA’s Customer Service Center at (800) 659-2955 or email disastercustomerservice@sba.gov for additional assistance. For individuals who are deaf, hard of hearing, or have a speech disability, telecommunications relay services can be accessed by dialing 7-1-1.

With the deadline fast approaching, the SBA urges eligible businesses and organizations to take advantage of this opportunity to secure the financial support needed to recover and thrive once more.