Shapiro Administration Secures Low-interest Federal Loans and Activates Disaster Grant Program

Harrisburg, PA – The Shapiro Administration announced today that the U.S. Small Business Administration (SBA) approved Gov. Josh Shapiro’s recent request to make low-interest loans available to individuals and families affected by the July 11, 2026, severe storms and flash flooding in Philadelphia County, and the surrounding counties of Bucks, Delaware and Montgomery.

Additionally, the Shapiro Administration has activated the Commonwealth Disaster Recovery Assistance Program (DRAP) for certain areas of Philadelphia County through the Pennsylvania Emergency Management Agency (PEMA), which provides grants to individuals and families affected by the July 11, 2026, severe storms and flash flooding who live in the City of Philadelphia. To be eligible for the DRAP grants, individuals and families need to meet certain income requirements, have incurred damage from the storms which was reported to the Philadelphia Office of Emergency Management, and have those damages verified by an appropriate entity.

The severe storms and flash flooding on July 11 caused significant damage for many families and businesses in Philadelphia, and we want those affected to know help is available. The Shapiro Administration worked with the federal government to quickly open up access to low-interest loans, and PEMA will activate the Commonwealth’s disaster grant program to help those impacted by the storms to begin the recovery process and recoup unexpected losses. 

                                                                                                                                                                     — PEMA Director Randy Padfield

“The July 11 flooding and wind gust damage impacted lives and caused extensive damage across Philadelphia,” said Philadelphia Mayor Cherelle L. Parker. “Our City team has been working closely with residents as they recover from their losses and begin the difficult process of putting their homes, lives and businesses back together. We are grateful for the strong intergovernmental partnership that is bringing additional support to those impacted. I thank Governor Shapiro and his administration for moving quickly to help our communities recover and become whole again.”

The SBA’s Disaster Loan Program provides low-interest loans for homeowners, renters, private non-profit organizations, and businesses who sustained physical damages from flooding. The SBA can provide up to $500,000 for homeowners to replace or repair their primary residences and up to $100,000 for homeowners and renters to replace or repair personal property. Businesses and most private non-profit organizations may apply for up to $2 million to cover disaster losses not fully covered by insurance.

Additionally, small businesses and most private nonprofit organizations located in the declared disaster area that have suffered substantial economic injury may be eligible for an SBA Economic Injury Disaster Loan (EIDL).

The SBA offers long-term repayment options, with loan terms of up to 30 years to help keep payments affordable. Repayment terms are determined on a case-by-case basis based on each borrower’s ability to repay. Additional information about the SBA disaster declaration and access to the online loan application for the July 11, 2026, flash flooding and severe storms can be found here.

Applicants may also obtain information and loan applications by calling the SBA’s Customer Service Center at 1-800-659-2955 (people who are deaf, hard of hearing or have a speech disability should dial 7-1-1 for relay services), or by emailing DisasterCustomerService@sba.gov and referencing Pennsylvania Disaster Number PA-20038.

The deadline to return SBA disaster loan applications for physical damages is Sep. 28, 2026. The deadline to return SBA economic injury disaster loan (EIDL) applications is April 30, 2027.

The SBA will open two Disaster Loan Outreach Centers (DLOCS) in Philadelphia. The first location at Dixon House will open Tuesday, Aug. 4 at 10:00 AM to provide in-person assistance for those wishing to apply.

Visiting the DLOC is not required to obtain assistance.

Location:
Dixon House

1920 S 20th St.,

Philadelphia, PA 19145

Hours of Operation:
Monday through Friday from 9:00 AM until 6:00 PM.
Saturday from 10:00 AM until 2:00 PM
Sunday the DLOC is closed

The Dixon House DLOC will permanently close Wednesday, Aug. 19, 2026, at 5:00 PM.

A second DLOC will open at Community of Compassion CDC Community Center/NCAC3, 6150 Cedar Ave., Philadelphia, PA 19143. Dates and hours of operation will be announced at a future time.

Alternatively, paper loan applications can be downloaded here. Completed paper applications can be dropped off in-person at the DLOC or mailed to:

U.S. Small Business Administration
Processing and Disbursement
14925 Kingsport Road
Fort Worth, TX 76155-2243

Commonwealth DRAP grants are intended for homeowners and renters who meet lower income thresholds, are uninsured or underinsured, and have not received other local, state, federal, non-governmental, or private aid. Eligible households may receive DRAP grants of up to $20,000 to repair their home, cover temporary housing and rental expenses, or replace essential personal property.

Those residing in Philadelphia County affected by the July 11, 2026, severe storms and flash flooding are encouraged to visit the PEMA website at pa.gov/ready/drap to see if they live in a zip code that may qualify them qualify for DRAP grants.

The DRAP application portal will open on Tuesday, Aug. 4, 2026.

All DRAP applications must be submitted by Nov. 2, 2026.

Anyone still needing assistance with non-emergency questions, call 311 during business hours. You can also visit a Neighborhood Community Action Center for assistance.