Small businesses and nonprofit organizations in Dallas County, Ellis County and several other North Texas counties now have access to federal disaster assistance following a drought declaration announced by the U.S. Small Business Administration.
The SBA said low-interest Economic Injury Disaster Loans are available to eligible small businesses, small agricultural cooperatives, nurseries and private nonprofit organizations that experienced financial losses related to drought conditions that began Feb. 24.
The declaration covers Archer, Baylor, Clay, Dallas, Ellis, Henderson, Hunt, Jack, Kaufman, Rockwall, Throckmorton, Van Zandt, Wichita, Wilbarger and Young counties.
The loans are intended to help organizations meet working capital needs resulting from the disaster. Businesses do not need to have suffered physical damage to qualify for assistance.
According to the SBA, loan funds may be used to pay fixed debts, payroll, accounts payable and other expenses that could not be paid because of the drought’s economic impact.
“Through a declaration by the U.S. secretary of agriculture, SBA provides critical financial assistance to help communities recover,” Chris Stallings, associate administrator of the SBA’s Office of Disaster Recovery and Resilience, said in a statement. “We’re pleased to offer loans to small businesses and private nonprofits impacted by these disasters.”
Eligible applicants may receive loans of up to $2 million. Interest rates are as low as 4% for small businesses and 3.625% for private nonprofit organizations.
Repayment terms may extend up to 30 years, depending on an applicant’s financial condition.
The SBA said interest will not accrue and payments will not be due until 12 months after the first loan disbursement.
The assistance is designed to help organizations recover from economic losses tied to drought conditions and maintain operations during periods of financial hardship.
Businesses and nonprofit organizations can apply online through the SBA’s disaster assistance portal. The application deadline is Feb. 1, 2027.
The SBA’s Economic Injury Disaster Loan program is available only to eligible businesses and nonprofit organizations that can demonstrate economic losses directly related to the declared disaster.
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