The U.S. Small Business Administration (SBA) is reminding small businesses and private nonprofit organizations in Colorado about the approaching deadline for applying for federal disaster loans related to the drought that began on August 6, 2024. Eligible entities have until May 30 to apply for these low-interest loans designed to offset economic losses.
The disaster declaration covers the Colorado counties of Adams, Arapahoe, Denver, and Jefferson, making businesses and nonprofits in these areas eligible for SBA's Economic Injury Disaster Loan (EIDL) program. This program is available to small businesses, small agricultural cooperatives, nurseries, and PNPs with financial losses directly linked to the drought. It should be noted that agricultural producers, farmers, and ranchers do not qualify, except for small aquaculture enterprises.
EIDLs can be used for working capital needs resulting from the disaster, regardless of whether the business or PNP sustained any physical damage. These loans may help pay fixed debts, payroll, accounts payable, and other bills that went unpaid due to the drought.
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.”
Eligible small businesses can apply for loan amounts up to $2 million, with interest rates as low as 4% for small businesses and 3.25% for PNPs. The terms can extend up to 30 years, with no interest or payments required until 12 months after the first loan disbursement. Loan amounts and terms are determined based on each applicant’s financial situation.
For more information or to apply, visit sba.gov/disaster. Applicants can also contact SBA’s Customer Service Center at (800) 659-2955 or email disastercustomerservice@sba.gov. Individuals who are deaf, hard of hearing, or have a speech disability can access telecommunications relay services by dialing 7-1-1. The deadline for submitting completed loan applications is May 30.
The SBA supports small businesses by providing essential resources and support to help them start, grow, and recover from disasters.