Money now available for North Texans with recent storm damage. Here’s how much
The U.S. Small Business Administration has opened loans for residents and businesses after disastrous storms and tornadoes that recently tore through North Texas.
The low-interest federal disaster loans opened May 8, according to the SBA. The deadline for physical damage applications is July 6, and the deadline for economic injury applications is Feb. 8, 2027. The counties covered in the SBA’s disaster declaration are Cooke, Denton, Hood, Jack, Johnson, Montague, Palo Pinto, Parker, Tarrant and Wise.
The borrowing amounts range from up to $100,000 to $2 million, depending on the category.
Physical damage loans
Businesses and nonprofits are eligible to borrow up to $2 million through business physical disaster loans.
The money can be used to repair or replace real estate, machinery, equipment and other business assets.
Homeowners and renters can receive up to $100,000 to replace or repair personal property, including clothing, furniture, cars and appliances. They can also receive up to $500,000 to fix their primary residence. A loan increase of up to 20% can also be possible for homeowners if they have eligible mitigation improvements. Those improvements include pipe insulation, walls, attics, weather stripping doors and windows and installing storm windows to prevent future disasters.
Economic injury disaster loans
Small businesses, small agricultural cooperatives and private nonprofit organizations, including faith-based organizations, are eligible to apply for loans under the SBA’s Economic Injury Disaster Loan program. The loans must be applied to financial losses directly related to recent disasters. Agricultural producers, farmers and ranchers are not eligible for the program, according to the SBA. The only exception to that rule is for aquaculture enterprises. The loans can be used to pay for fixed debts, payrolls, accounts payable and other bills that businesses could not pay due to the disaster.
Interest rates
The loans are considered low-interest for both businesses and residents. The terms are up to 30 years. Interest does not begin to accrue, and first payments are due 12 months from the date of the first loan payment. Loans terms and interest rates can still vary, however. The SBA said it reviews loan applications based on applicants’ financial state to make their decision.
- Business interest rates: As low as 4%
- Nonprofits: As low as 3.625%
- Homeowners and renters: As low as 2.875%
Application help
The SBA has Disaster Loan Outreach Centers stationed throughout North Texas. The centers have customer service representatives on staff to assist applicants. The centers offer both walk-ins and appointments, which can be made at appointment.sba.gov. Applicants can also call the customer service line at (800) 659-2955 or email disastercustomerservice@sba.gov for more information. Applications can also be made online on the SBA website.
