Drought Relief Available for Central Texas Small Businesses Through SBA Disaster Loan Program

For many Central Texas businesses, drought conditions are more than an environmental concern. They can affect customer traffic, reduce revenues, increase operating expenses, and create challenges that ripple throughout local economies. Now, federal assistance is available to help eligible small businesses and nonprofit organizations weather those financial hardships.

The U.S. Small Business Administration (SBA) has announced the availability of low-interest federal disaster loans for eligible small businesses and private nonprofit organizations affected by drought conditions that began September 29 and continue to impact communities across Texas and neighboring portions of New Mexico.

The declaration includes numerous Central Texas counties, including Bell, Bosque, Coryell, Falls, Hamilton, Lampasas, Limestone, McLennan, and Mills Counties, along with dozens of other counties throughout the state.

Unlike disaster loans associated with hurricanes, floods, or tornadoes, these Economic Injury Disaster Loans are designed to help organizations meet ordinary financial obligations and operating expenses that cannot be met because of the effects of the disaster. The assistance is intended to provide working capital, helping eligible organizations maintain stability during periods of economic hardship.

Eligible applicants include small businesses, private nonprofit organizations, faith-based organizations, small agricultural cooperatives, nurseries, and small aquaculture enterprises.

Businesses and nonprofit organizations may qualify for loans of up to $2 million. Interest rates can be as low as 4 percent for small businesses and 3.625 percent for private nonprofit organizations. Loan terms may extend up to 30 years, depending on an applicant’s financial circumstances.

In an effort to provide additional relief, the SBA notes that borrowers will not be required to make interest payments or principal payments during the first 12 months following loan disbursement.

For many community organizations, these loans could provide breathing room needed to continue serving residents, retaining employees, and maintaining operations while drought conditions persist.

Applications are being accepted through June 21, 2027 .

Business owners and nonprofit leaders interested in applying can complete an application online at SBA Disaster Assistance.

Applicants with questions may contact the SBA National Support Network Center by calling (866) SBA-HELP (722-4357) or by emailing disastercustomerservice@sba.gov. Individuals who are deaf, hard of hearing, or have a speech disability may dial 7-1-1 to access telecommunications relay services.

As drought conditions continue to affect parts of Texas, SBA officials encourage eligible organizations to explore available assistance and determine whether the program can help support their ongoing recovery and operations.

Drought Relief Available for Central Texas Small Businesses Through SBA Disaster Loan Program

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