The U.S. Small Business Administration (SBA) has issued a reminder to small businesses and private nonprofit organizations in Arizona about the upcoming deadline to apply for federal disaster loans. These loans are intended to mitigate economic losses caused by drought conditions that began on September 10, 2024. The application deadline is set for July 7, 2025.
The declaration affects several counties across four states: Coconino, La Paz, Maricopa, Mohave, Yavapai, and Yuma in Arizona; Imperial, Riverside, and San Bernardino in California; Clark and Lincoln in Nevada; and Kane and Washington in Utah.
The SBA's Economic Injury Disaster Loan (EIDL) program is available under this declaration. It provides financial assistance to small businesses, small agricultural cooperatives, nurseries, and private nonprofits that have experienced financial losses due to the drought. However, the SBA cannot offer disaster loans to agricultural producers, farmers, or ranchers unless they are small aquaculture enterprises.
EIDLs can be used for working capital needs arising from the disaster. They can cover fixed debts, payroll expenses, accounts payable, and other bills that could not be paid because of the drought's impact. Businesses do not need to have suffered physical damage to qualify for these loans.
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: “We’re pleased to offer loans to small businesses and private nonprofits impacted by these disasters.”
Eligible applicants can receive up to $2 million with interest rates as low as 4% for small businesses and 3.25% for private nonprofits. The loan terms can extend up to 30 years with no interest accruing or payments due until one year after the first loan disbursement. Loan amounts and terms are determined based on each applicant’s financial situation.
Applications can be submitted online at sba.gov/disaster or through contact with 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 those who are deaf or hard of hearing.
All completed loan applications must be submitted by July 7.