Low-interest Disaster Loans Help Fuel Texas Recovery

AUSTIN, Texas – Federal officials urge those with damage or losses from the May storms and floods to complete a no-obligation disaster loan application from the U.S. Small Business Administration to help with their recovery.

Completing the application can open the door to all federal assistance, including possible additional grants from FEMA. If approved, and the loan is not accepted, survivors may find themselves ineligible for some forms of federal assistance.

Many Texans who register for disaster assistance with FEMA will receive an automated call from SBA with information on how to complete the loan application process. These low-interest SBA loans are the major source of funding for disaster recovery.

SBA provides low-interest loans to businesses of all sizes (including landlords) and to homeowners, renters and eligible private nonprofit organizations that sustained disaster damage. There is no cost to apply for a loan.

Assistance from FEMA is limited to help jump-start the recovery; it may not cover all damage or property loss. Completing the SBA loan application may make FEMA assistance available to replace essential household items, replace or repair a damaged vehicle, or pay for storage costs.

Interest rates can be as low as 4 percent for businesses, 2.625 percent for private nonprofit organizations and 1.813 percent for homeowners and renters with terms up to 30 years. The rates are locked in for the life of the loan.

• Businesses of all sizes can qualify for up to $2 million in low-interest loans to help cover physical damage.
• Small businesses and most private nonprofits suffering economic impact due to the severe weather and flooding can apply for up to $2 million for any combination of property damage or economic injury under SBA’s Economic Injury Disaster Loan program.
• Eligible homeowners may borrow up to $200,000 for home repair or replacement of primary residences, and eligible homeowners and renters may borrow up to $40,000 to replace disaster-damaged or destroyed personal property, including a vehicle. 

Applicants may apply online using the electronic loan application via SBA’s secure website at DisasterLoan.sba.gov/ela.

Disaster loan information and application forms are available online at SBA.gov/disaster, from SBA’s Customer Service Center by calling 800-659-2955 or emailing DisasterCustomerService@sba.gov. Individuals who are deaf or hard of hearing may call 800-877-8339.

SBA representatives are also available at disaster recovery centers to provide information about disaster loans, the application process or help completing an SBA application. To find the nearest one, go online to the Disaster Recovery Center Locator at asd.fema.gov/inter/locator.

Completed applications should be mailed to:

U.S. Small Business Administration
Processing and Disbursement Center
14925 Kingsport Road
Fort Worth, TX  76155

The 19 counties affected by the May storms are Austin, Bastrop, Brazoria, Brazos, Burleson, Eastland, Fort Bend, Grimes, Hidalgo, Hood, Lee, Liberty, Montgomery, San Jacinto, Stephens, Travis, Tyler, Waller and Washington.

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FEMA’s mission is to support our citizens and first responders to ensure that as a nation we work together to build, sustain, and improve our capability to prepare for, protect against, respond to, recover from, and mitigate all hazards.