The U.S. Small Business Administration (SBA) is reminding small businesses and private nonprofit organizations in Colorado about the approaching deadline to apply for disaster loans. These low-interest federal loans aim to offset economic losses caused by the drought that began on July 9, 2024. Eligible entities have until May 5, 2025, to submit their applications.
This disaster declaration affects multiple counties, including Adams, Boulder, Broomfield, Grand, Jackson, Larimer, Logan, Morgan, and Weld in Colorado. Additionally, it covers Kimball County in Nebraska, and Albany and Laramie counties in Wyoming.
Under this declaration, SBA's Economic Injury Disaster Loan (EIDL) program can assist small businesses, small agricultural cooperatives, nurseries, and private non-profits with financial losses directly related to the drought. However, the SBA cannot provide disaster loans to agricultural producers, farmers, or ranchers, except for small aquaculture enterprises.
EIDL loans are meant for working capital needs resulting from the disaster. They can be used to pay fixed debts, payroll, accounts payable, and other bills that could not be paid due to the drought. "Through a declaration by the U.S. Secretary of Agriculture, SBA provides critical financial assistance to help communities recover," said Chris Stallings, associate administrator of the Office of Disaster Recovery and Resilience at the SBA. "We’re pleased to offer loans to small businesses and private nonprofits impacted by these disasters."
The loans can reach up to $2 million, with interest rates as low as 4% for small businesses and 3.25% for private nonprofits, with terms extending up to 30 years. Interest does not accrue and payments are not due until 12 months after the first loan disbursement. The specific loan amounts and terms are determined based on each applicant's financial situation.
Applicants can apply online through the SBA website or seek more information by contacting SBA's Customer Service Center. People with disabilities may use telecommunications relay services by dialing 7-1-1.
Applications must be completed and submitted to the SBA by May 5.