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 Maryland affected by drought conditions starting March 4. This assistance is offered under a disaster declaration that includes several counties in Maryland, as well as regions in the District of Columbia, Pennsylvania, and Virginia.
Eligible entities include small businesses, small agricultural cooperatives, nurseries, and private nonprofits that have experienced financial losses due to the drought. However, agricultural producers, farmers, or ranchers are generally not eligible unless they are involved in aquaculture enterprises. The Economic Injury Disaster Loan (EIDL) program provides funds for working capital needs resulting from the disaster.
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.” He added that they are pleased to offer loans to those impacted by these disasters.
Loans can reach up to $2 million with interest rates as low as 4% for small businesses and 3.62% for nonprofits. Repayment terms can extend up to 30 years with payments deferred for 12 months after the first loan disbursement.
Applications can be submitted online at sba.gov/disaster or by contacting SBA’s Customer Service Center at (800) 659-2955 or via email at disastercustomerservice@sba.gov. Telecommunications relay services are available by dialing 7-1-1 for individuals who are deaf or hard of hearing.
The deadline for submitting economic injury applications is January 6, 2026.