When natural disasters strike, and federal emergency declarations are made, the U.S. Small Business Administration steps in with a vital recovery tool: low-interest disaster loans. These loans are available to homeowners, renters, businesses, and nonprofit organizations in designated disaster areas — including in communities in Central Texas recently impacted by flash flooding.
The SBA offers several forms of financial assistance aimed at rebuilding and recovery:
Home and Personal Property Loans help homeowners and renters repair or replace disaster-damaged real estate and personal belongings. These loans can go up to $200,000 for property repairs and $40,000 for contents such as furniture and vehicles.
Business Physical Disaster Loans are available to businesses of any size and most nonprofits to repair or replace buildings, equipment, inventory, and fixtures damaged in the disaster. The limit is typically $2 million.
Economic Injury Disaster Loans, or EIDLs, provide working capital to small businesses and nonprofits that have lost revenue due to the disaster. These loans also cap at $2 million and are designed to cover essential expenses like payroll and rent.
The interest rates on these loans are typically well below market rates — often between 2% and 4% — with repayment terms of up to 30 years. In many cases, borrowers can defer their first payment for up to 12 months.
To apply, residents and business owners can visit disasterloanassistance.sba.gov or call the SBA’s disaster assistance center at 1-800-659-2955. SBA representatives are also deployed to FEMA Disaster Recovery Centers to assist applicants in person.
Officials stress that anyone affected by a declared disaster should first register with FEMA. If referred to the SBA, applying is free and comes with no obligation to accept the loan if approved.
The assistance plays a critical role in long-term recovery for communities grappling with the aftermath of floods, wildfires, and other devastating events.
What questions do you have for the SBA about Kerr County's flood recovery?
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This episode will be recorded on Tuesday, July 8, 2025.
