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. These loans are intended to mitigate economic losses caused by drought, which began on October 15, 2024. The deadline for applications is June 23.
This disaster declaration affects several counties in Colorado, including Boulder, Clear Creek, Eagle, Gilpin, Grand, Jackson, Larimer, Routt, and Summit. Under this declaration, the SBA's Economic Injury Disaster Loan (EIDL) program is available to eligible small businesses and private nonprofits that have experienced financial setbacks due to the drought. However, agricultural producers such as farmers and ranchers are not eligible unless they operate small aquaculture enterprises.
The EIDLs can be used for working capital needs even if there was no physical damage to the business or organization. The funds may cover fixed debts, payroll expenses, accounts payable, and other bills that could not be paid because of the disaster.
Chris Stallings from 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 these loans to those affected by the disasters.
Loan amounts can reach up to $2 million with interest rates set at 4% for small businesses and 3.25% for private nonprofits. The terms can extend up to 30 years. Importantly, interest does not accrue nor are payments required until one year after the first loan disbursement. The specific loan amounts and terms depend on each applicant’s financial situation.
Applications can be submitted online at sba.gov/disaster or through contact with SBA’s Customer Service Center via phone or email. Those with hearing or speech disabilities can use telecommunications relay services by dialing 7-1-1.
All completed loan applications must be submitted by June 23.
The U.S. Small Business Administration supports American entrepreneurs by providing resources necessary for starting and growing their businesses or recovering from declared disasters through its extensive network of field offices and partnerships.