The U.S. Small Business Administration (SBA) has announced the availability of low-interest federal disaster loans specifically targeted at small businesses and private nonprofit organizations in Maryland affected by drought conditions beginning November 1, 2024. This financial support comes in response to economic losses suffered due to the prolonged lack of rainfall.
The federal declaration encompasses multiple counties across several states. In Maryland, counties such as Allegany, Anne Arundel, and Baltimore City are included. The declaration also extends to parts of Delaware, Washington D.C., Pennsylvania, Virginia, and West Virginia.
The SBA’s Economic Injury Disaster Loan (EIDL) program is now accessible to eligible small businesses, small agricultural cooperatives, nurseries, and private nonprofit organizations that experienced financial losses related to this drought. However, the loans are not available to agricultural producers, farmers, or ranchers except for aquaculture enterprises. Nurseries may apply for economic injury disaster loans due to losses incurred from drought conditions.
EIDLs are intended to cover working capital needs arising from the disaster. Even businesses or organizations that did not sustain physical damages can apply for these loans, which can be used to pay for fixed debts, payroll, accounts payable, and other unavoidable expenses not covered due to the drought.
“Through a declaration by the U.S. Secretary of Agriculture, SBA provides critical financial assistance to help communities recover,” stated Chris Stallings, the associate administrator of the SBA’s Office of Disaster Recovery and Resilience. “We’re pleased to offer loans to small businesses and private nonprofits impacted by these disasters.”
The loans can be granted for amounts up to $2 million, with interest rates as low as 4% for small businesses and 3.625% for private nonprofits. Terms can extend up to 30 years. Importantly, interest does not accrue, nor are payments required until 12 months after the first loan disbursement. The SBA will determine loan amounts and terms based on each applicant's specific financial circumstances.
Applicants can apply online at sba.gov/disaster, reach out via the SBA Customer Service Center at (800) 659-2955, or email disastercustomerservice@sba.gov for more information. Telecommunications relay services are also available at 7-1-1 for those with hearing or speech disabilities.
The deadline for returning economic injury applications is set for November 25, 2025.
The U.S. Small Business Administration continues its mission to support small businesses across the nation, providing resources and assistance to help them recover from declared disasters. More information is available at www.sba.gov.