The U.S. Small Business Administration (SBA) has issued a reminder to small businesses and private nonprofit organizations in Colorado about the approaching deadline for federal disaster loan applications. The loans aim to alleviate economic losses resulting from the drought that began on August 6, 2024. Eligible entities have until April 14, 2025, to apply.
This disaster declaration applies to several counties in Colorado: Adams, Boulder, Broomfield, Gilpin, Grand, Jefferson, Larimer, and Weld. Under this declaration, the SBA’s Economic Injury Disaster Loan (EIDL) program is available to small businesses, small agricultural cooperatives, nurseries, and private nonprofits experiencing financial losses directly related to the drought. However, the SBA cannot provide disaster loans to agricultural producers such as farmers or ranchers unless they are small aquaculture enterprises.
EIDLs can be used for working capital needs caused by the drought even if there was no physical damage. These loans can help cover fixed debts, payrolls, accounts payable, and other expenses that could not be paid due to the disaster.
“SBA loans help eligible small businesses and private nonprofits cover operating expenses after a disaster, which is crucial for their recovery,” said Chris Stallings of the SBA's Office of Disaster Recovery and Resilience. “These loans not only help business owners get back on their feet but also play a key role in sustaining local economies in the aftermath of a disaster.”
The maximum loan amount is $2 million with interest rates as low as 4% for small businesses and 3.25% for private nonprofits. Loan terms can extend up to 30 years with no interest accrual or payments required until one year after the first disbursement.
Applications can be submitted online at sba.gov/disaster or through contact with SBA’s Customer Service Center at (800) 659-2955 or via email at disastercustomerservice@sba.gov. Telecommunications relay services are available by dialing 7-1-1 for those who are deaf or hard of hearing.
All completed applications must be submitted by April 14.