The U.S. Small Business Administration (SBA) announced the availability of low-interest federal disaster loans for Texas businesses and residents following President Biden’s major disaster declaration. This declaration addresses the impacts of Hurricane Beryl, which affected Brazoria, Chambers, Galveston, Harris, Jackson, Jasper, Jefferson, Liberty, Matagorda, Montgomery, Orange, Polk, San Jacinto, Walker, and Wharton counties from July 5-9.
“SBA’s mission-driven team stands ready to help Texas’s small businesses and residents impacted by Hurricane Beryl,” said SBA Administrator Isabella Casillas Guzman. “We’re committed to providing federal disaster loans swiftly and efficiently, with a customer-centric approach to help businesses and communities recover and rebuild.”
Francisco Sánchez Jr., associate administrator for the SBA’s Office of Disaster Recovery and Resilience, highlighted the agency’s ongoing support, stating, “As a native Houstonian, I am deeply concerned for communities now facing two historic disasters within a matter of weeks. Hurricane Beryl was catastrophic and deadly. The U.S. Small Business Administration is still on the ground responding to the derecho and will send reinforcements in response to Beryl. I was on the ground just days after the storm and I can assure Texans that the Biden-Harris Administration will be with them every step of the way. SBA will work across local, state, federal, business, and non-profit partners to make every possible resource available.”
Eligible businesses and private nonprofit organizations can apply for loans up to $2 million to repair or replace damaged properties, equipment, inventory, and other business assets. Additional funding may be available to help businesses make improvements that reduce future disaster risks.
For small businesses, small agricultural cooperatives, and private nonprofits, SBA offers Economic Injury Disaster Loans to help cover working capital needs caused by the disaster. This financial support is available even if the business did not suffer property damage.
Homeowners can borrow up to $500,000 to repair or replace damaged real estate, while homeowners and renters can receive up to $100,000 to cover personal property losses, including vehicles.
Interest rates for these loans can be as low as 4 percent for businesses, 3.25 percent for private nonprofits, and 2.688 percent for homeowners and renters, with repayment terms of up to 30 years. Loan amounts and terms depend on each applicant’s financial condition. Interest does not begin to accrue until 12 months after the first loan disbursement, with repayment starting 12 months from the first disbursement.
The SBA will provide personalized assistance to disaster loan applicants at Federal-State Disaster Recovery Centers once they open in the affected areas. For more details and the locations of recovery centers, contact the SBA Customer Service Center at (800) 659-2955.
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This article, "SBA Offers Low-Interest Loans to Texas Businesses and Residents After Hurricane Beryl" was first published on Small Business Trends
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