Spring-area small businesses and nonprofits affected by last winter's drought have until Monday, Sept. 14 to apply for federal disaster loans of up to $2 million with no payments due for the first year.

The U.S. Small Business Administration set the deadline for Economic Injury Disaster Loan applications under declaration TX-20068, which covers Harris County and 10 other Texas counties where drought conditions began Dec. 29, 2025. The agency posted a reminder Aug. 14 through Ready Harris, the county's emergency preparedness office.

The loans can cover fixed debts, payroll, accounts payable and other bills that went unpaid because of the drought. Businesses do not need to have suffered physical damage to qualify.

Who can apply

Eligible applicants include small businesses, private nonprofits and faith-based organizations, small agricultural cooperatives and nurseries, and small aquaculture enterprises. Farmers and ranchers are not eligible unless they operate a small aquaculture business.

Loan terms

Interest rates start at 4% for small businesses and 3.625% for private nonprofits. Terms extend up to 30 years. No interest accrues and no payments are required during the first 12 months after the first disbursement. The SBA sets individual loan amounts based on each applicant's financial condition; $2 million is the maximum, not a guaranteed figure.

"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 when the agency announced the program Jan. 20.

How to apply

Applications are open at sba.gov/disaster. Business owners can also call the SBA Customer Service Center at (800) 659-2955 or email [email protected]. People who are deaf, hard of hearing or have a speech disability can dial 7-1-1 for telecommunications relay services.

The deadline is Sept. 14. No grace period has been announced for this declaration.