The U.S. Small Business Administration (SBA) has announced that low-interest federal disaster loans are available for small businesses and private nonprofit organizations in Colorado. These entities have been affected by economic losses due to a drought beginning on January 28. The declaration covers the Colorado counties of Archuleta, Dolores, Hinsdale, La Plata, Mineral, Montezuma, Rio Grande, Saguache, and San Juan, as well as San Juan County in New Mexico.
These loans are provided under the SBA's Economic Injury Disaster Loan (EIDL) program. They are available to small businesses, small agricultural cooperatives, nurseries, and private nonprofits with financial losses from the disaster. However, the loans are not available to agricultural producers, farmers, or ranchers, except for small aquaculture enterprises.
"Through a declaration by the U.S. Secretary of Agriculture, SBA provides critical financial assistance to help communities recover," Chris Stallings, associate administrator of the Office of Disaster Recovery and Resilience at the SBA, stated. "We’re pleased to offer loans to small businesses and private nonprofits impacted by these disasters."
EIDLs can be used for working capital needs caused by the disaster, including fixed debts, payroll, accounts payable, and other unpaid bills. The loan amount may reach up to $2 million with interest rates as low as 4% for small businesses and 3.625% for private nonprofits. Loan terms can be as long as 30 years, with interest and payments deferred for 12 months after the first loan disbursement.
To apply for the loans, applicants can visit sba.gov/disaster, call SBA’s Customer Service Center at (800) 659-2955, or email disastercustomerservice@sba.gov for more information. Individuals who are deaf, hard of hearing, or have a speech disability are advised to use telecommunications relay services by dialing 7-1-1.
The deadline for submitting completed loan applications is December 1.