How to Apply for SBA Disaster Loan

The U.S. Small Business Administration (SBA) offers low-interest disaster loans to Texans.

SBA disaster loans are the largest source of federal disaster recovery funds for homeowners, renters, businesses and nonprofit organizations. These loans cover losses not fully compensated by insurance or other resources.

Homeowners may be eligible for a disaster loan up to $500,000 to repair or replace damaged or destroyed real estate. SBA may also be able to help homeowners and renters with up to $100,000 to repair or replace damaged or destroyed personal property, including personal vehicles.

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 help with the cost of improvements to protect, prevent or minimize disaster damage from occurring in the future.

For small businesses, small agricultural cooperatives, small businesses engaged in aquaculture and most private nonprofit organizations, 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.

Interest rates can be as low as 4 percent for businesses, 3.25 percent for private nonprofit organizations and 2.688 percent for homeowners and renters with terms up to 30 years. Loan amounts and terms are set by SBA and are based on each applicant's financial condition. If approved, you're not obligated to take a loan.

Interest does not begin to accrue until 12 months from the date of the first disaster loan disbursement. SBA disaster loan repayment begins 12 months from the date of the first disbursement.

The deadline to apply for physical damage is Aug. 15, 2024. The deadline to apply for economic injury is Feb. 18, 2025.

Applicants may apply online and receive additional disaster assistance information at SBA.gov/disaster or by calling 800-659-2955. SBA representatives are available to provide one-on-one assistance to disaster loan applicants at Disaster Recovery Centers in Texas. Business Recovery Centers are operating at University of Houston Downtown (UHD), Marilyn Davies College of Business, Trini Mendenhall Community Center in Houston, East Montgomery County Improvement District in New Caney, the Innovation Black Chamber of Commerce in Killeen, TX, and the MarMo Plaza in Galveston.

You can apply for an SBA disaster loan at the same time you apply to FEMA for assistance.