The U.S. Small Business Administration (SBA) is reminding small businesses and private nonprofit organizations in Colorado of the approaching deadline to apply for federal disaster loans. These loans aim to offset economic losses caused by drought conditions that began on September 17, 2024. The application deadline is set for July 14, 2025.
The disaster declaration includes several counties across four states: Colorado's Baca, Bent, Cheyenne, Crowley, Kiowa, Las Animas, Lincoln, Otero and Prowers; Kansas' Greeley, Hamilton, Morton and Stanton; New Mexico's Union County; and Oklahoma's Cimarron County.
Under this declaration, SBA’s Economic Injury Disaster Loan (EIDL) program is available to eligible small businesses and private nonprofits with financial losses directly related to the drought. However, agricultural producers such as farmers or ranchers are not eligible unless they are small aquaculture enterprises.
These loans can be used for working capital needs caused by the disaster even if there was no physical damage to the business or nonprofit. They may cover fixed debts, payrolls, accounts payable and other expenses not paid due to the drought.
“Through a declaration by the U.S. Secretary of Agriculture, SBA provides critical financial assistance to help communities recover,” said Chris Stallings from the SBA. “We’re pleased to offer loans to small businesses and private nonprofits impacted by these disasters.”
Loan amounts can reach up to $2 million with interest rates as low as 4% for small businesses and 3.25% for private nonprofits over terms up to 30 years. Interest does not accrue nor are payments required until one year after the first loan disbursement. Loan amounts and terms are determined based on each applicant’s financial condition.
Applications can be submitted online at sba.gov/disaster or by contacting SBA’s Customer Service Center at (800) 659-2955 or emailing disastercustomerservice@sba.gov. For those who are deaf or hard of hearing or have a speech disability should dial 7-1-1 for telecommunications relay services.
Completed loan applications must be submitted by July 14.