July 16, 2025

Funding Available for Texas Micro-Businesses Affected by Flooding

News Summary

Governor Greg Abbott has announced a new funding opportunity for Texas micro-businesses impacted by catastrophic flooding through the Texas Micro-Business Disaster Recovery Loan Program. This initiative offers up to $5 million in zero-interest loans to help small businesses recover. With funding available until August 2025, community development financial institutions are encouraged to assist micro-businesses in navigating this crucial aid. As severe weather continues to affect the region, local authorities prioritize safety while supporting economic resilience.

Austin, Texas — Governor Greg Abbott has announced the allocation of up to $5 million through the Texas Micro-Business Disaster Recovery (MBDR) Loan Program to assist micro-businesses adversely affected by recent catastrophic flooding across the state. This initiative is designated specifically for communities that have been declared disaster areas at the local, state, or federal levels.

During the announcement, Abbott reaffirmed the state’s dedication to supporting Texas families and businesses impacted by the flooding. He urged community development financial institutions (CDFIs) to take part in the program, which aims to provide necessary financial relief to micro-businesses with fewer than 20 employees who struggle to access capital following the declared disaster.

The MBDR Loan Program is governed by the Governor’s Texas Economic Development & Tourism Office. It offers zero-interest loans exclusively to qualified CDFIs that cater specifically to micro-businesses. The funding is expected to be available through August 31, 2025. Interest and fees from the loans generated by participating CDFIs will go to the respective financial institutions.

Currently approved CDFIs can be found on the Texas government website, and micro-businesses are encouraged to reach out to their preferred CDFI to promote their participation in this significant financial recovery effort.

The urgency for such a program comes amidst ongoing flash flooding in the Texas Hill Country, with numerous counties currently under emergency warnings. Areas affected by the recent flooding have reported extensive road closures and new weather alerts as heavy rainfall continues to pose risks.

As of July 13, the National Weather Service reported that the Lampasas River rose an alarming 33 feet within just four hours, with up to 6 inches of rain recorded in Lampasas County early Sunday morning. Mandatory evacuations have been ordered for regions south of the San Saba River, east of Highway 16, and north of Highway 190. Flash flood warnings are in effect for several counties including Gillespie, Llano, Burnet, Hays, Blanco, Travis, and Williamson, with advisories expected to remain active through various dates in July.

The heavy rainfall and subsequent flooding have raised significant concerns about the potential for life-threatening conditions across Central Texas. In response to the hazardous situation, Travis County has implemented a ban on recreational use of local waterways. Local authorities have already initiated construction of temporary solutions aimed at restoring road access in the hardest-hit areas.

Flood advisories are actively being issued, reminding drivers to avoid flooded roads and urging them to heed the advice, “Turn around, don’t drown.” Many communities have reported catastrophic road closures, which have made previously passable routes impassable, resulting in extensive damage to local infrastructure and utilities.

Local emergency services continue to actively manage rescue operations as the flooding situation unfolds, with over 80 fatalities reported in the area and ongoing searches for missing individuals. Concerns have been raised with the Austin Firefighters union expressing dissatisfaction regarding the delayed deployment of firefighters to assist in flood-stricken regions; their criticism was directed at Fire Chief Joel Baker for the slow response to the crisis.

This array of initiatives and ongoing rescue efforts underscores the challenges faced by local communities as they work to recover from the devastating impacts of flooding in Texas. The Governor’s financial assistance initiative and local governmental responses play critical roles in supporting affected micro-businesses and residents as they navigate through this difficult time.

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Author: STAFF HERE GEORGETOWN

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