The U.S. Small Business Administration (SBA) has issued a reminder to small businesses and private nonprofit organizations in Colorado about the deadline to apply for low-interest federal disaster loans. These loans aim to alleviate financial losses caused by the drought that began on July 16, 2024. The deadline for applications is set for May 9, 2025.
The disaster declaration affects several counties, including Adams, Arapahoe, Boulder, Broomfield, Clear Creek, Denver, Douglas, Gilpin, Jefferson, Morgan, Park, Teller, Washington, and Weld. The SBA's Economic Injury Disaster Loan (EIDL) program is open to small businesses, small agricultural cooperatives, nurseries, and nonprofits that experienced financial setbacks due to this event. However, agricultural producers, farmers, or ranchers are excluded from this aid, except for small aquaculture enterprises.
The EIDLs aim to provide working capital necessary because of the drought. This assistance is available regardless of whether the small business or nonprofit suffered any physical damage. "Through a declaration by the U.S. Secretary of Agriculture, SBA provides critical financial assistance to help communities recover," stated 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."
Loan amounts can reach up to $2 million, with interest rates as low as 4% for small businesses and 3.25% for nonprofits. Loan terms can extend up to 30 years, with no accrual of interest or payments required until 12 months after the initial loan disbursement. Loan amounts and terms are determined based on the financial situation of each applicant.
The SBA advises prospective applicants to file their applications promptly. The applications will be processed in the order they are received, with a commitment to efficiency in processing. To apply, visit sba.gov/disaster or contact the SBA’s Customer Service Center at (800) 659-2955. Applicants with hearing or speech disabilities are advised to call 7-1-1 for telecommunications relay services.
All loan applications must be submitted to the SBA by May 9.
With a mission to support the American dream of business ownership, the SBA serves as a pivotal resource for entrepreneurs and small business owners to start, grow, and recover from declared disasters. It offers services through a broad network of field offices and partnerships with both public and private entities.