The U.S. Small Business Administration (SBA) has announced the availability of low-interest federal disaster loans for small businesses and private nonprofit organizations in Colorado affected by drought conditions starting from March 4. The disaster declaration includes several counties in Colorado: Delta, Dolores, Eagle, Garfield, Gunnison, Mesa, Moffat, Montrose, Ouray, Pitkin, Rio Blanco, Routt, San Juan, and San Miguel. Additionally, the Utah counties of Grand San Juan and Uintah are covered under this declaration.
The SBA's Economic Injury Disaster Loan (EIDL) program offers support to small businesses, small agricultural cooperatives, nurseries, and private nonprofits experiencing financial losses directly linked to the drought. However, agricultural producers such as farmers or ranchers are not eligible unless they operate small aquaculture enterprises.
These loans can be used for working capital needs resulting from the disaster and can help cover fixed debts, payroll expenses, accounts payable and other bills that cannot be paid due to the economic impact of the drought. Chris Stallings from 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.”
Loan amounts can reach up to $2 million with interest rates as low as 4% for small businesses and 3.62% for private nonprofits. The repayment terms can extend up to 30 years without accruing interest or requiring payments until 12 months after the initial loan disbursement.
Applications can be submitted online at sba.gov/disaster or through SBA’s Customer Service Center via phone or email. Completed applications must be submitted by January 5th next year.