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 Utah. The relief is being provided in response to economic losses caused by the drought that began on February 11. The counties in Utah that are covered by this declaration include Beaver, Box Elder, Davis, Juab, Millard, Salt Lake, Sanpete, Sevier, Tooele, Utah, and Weber. The neighboring Nevada counties of Elko, Lincoln, and White Pine are also included.
These loans fall under SBA’s Economic Injury Disaster Loan (EIDL) program, intended for small businesses, small agricultural cooperatives, and nurseries. While the SBA cannot offer loans to agricultural producers, farmers, or ranchers, small aquaculture enterprises are eligible.
EIDLs can be used to meet working capital needs that arose due to the drought, covering expenses such as fixed debts, payroll, and accounts payable, even if there was no physical damage to the business or nonprofit. Chris Stallings, associate administrator of the Office of Disaster Recovery and Resilience at the SBA, stated, “Through a declaration by the U.S. Secretary of Agriculture, SBA provides critical financial assistance to help communities recover. We’re pleased to offer loans to small businesses and private nonprofits impacted by these disasters.”
Loan amounts can reach up to $2 million. Interest rates are set at 4% for small businesses and 3.625% for private nonprofits. The loan terms can extend up to 30 years, with interest accruing and payments deferred for 12 months from the first disbursement. The SBA determines loan amounts and terms based on each applicant's financial situation.
Applications can be submitted online at sba.gov/disaster, and additional information is available by contacting SBA’s Customer Service Center at (800) 659-2955 or emailing disastercustomerservice@sba.gov. Telecommunications relay services are accessible for those who are deaf, hard of hearing, or have a speech disability by dialing 7-1-1. The deadline for submitting completed loan applications is December 8.