The U.S. Small Business Administration (SBA) has issued a reminder to small businesses and private nonprofit organizations in Colorado about the upcoming deadline to apply for federal disaster loans due to drought conditions. The loans are available as part of the Economic Injury Disaster Loan (EIDL) program, with applications due by June 16.
The disaster declaration affects several counties in Colorado, including Adams, Arapahoe, Denver, Douglas, Elbert, Jefferson, Lincoln, and Washington. The EIDL program is designed to assist small businesses, agricultural cooperatives, nurseries, and PNPs that have suffered financial losses directly linked to the drought. However, it does not extend to agricultural producers like farmers or ranchers unless they operate small aquaculture enterprises.
These loans are intended for working capital needs arising from the disaster and can be used for fixed debts, payrolls, accounts payable, and other expenses not covered due to economic disruptions. Chris Stallings from the SBA's Office of Disaster Recovery and Resilience stated: "SBA loans help eligible small businesses and private nonprofits cover operating expenses after a disaster, which is crucial for their recovery." He added that these financial aids play an essential role in sustaining local economies post-disaster.
Eligible applicants may borrow up to $2 million with interest rates starting at 4% for small businesses and 3.25% for PNPs over terms extending up to 30 years. There is no interest accrual or payment requirement until one year after the first loan disbursement.
Interested parties can apply online via sba.gov/disaster or reach out through SBA’s Customer Service Center by calling (800) 659-2955 or emailing disastercustomerservice@sba.gov. Telecommunications relay services are available by dialing 7-1-1 for those who are deaf or hard of hearing.
Applications must be submitted by June 16.