The U.S. Small Business Administration (SBA) is reminding small businesses and private nonprofit organizations in Arizona of the upcoming deadline to apply for federal disaster loans. These loans aim to mitigate economic losses caused by drought starting November 12, 2024. The application deadline is July 18, 2025.
The disaster declaration affects several counties in Arizona, including La Paz, Maricopa, Pima, and Yuma, as well as Imperial County in California. Under this declaration, SBA’s Economic Injury Disaster Loan (EIDL) program is available to eligible small businesses, small agricultural cooperatives, nurseries, and private nonprofits experiencing financial losses due to the drought. However, the SBA cannot provide disaster loans to agricultural producers, farmers, or ranchers unless they are small aquaculture enterprises.
These EIDLs are intended for working capital needs resulting from the disaster and can be used even if there was no physical damage to the business or nonprofit. The funds may cover fixed debts, payrolls, accounts payable, and other bills that remain unpaid because of 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: “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 3.62% for private nonprofits. Loan 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 SBA determines loan amounts and terms based on each applicant's financial condition.
Applications can be submitted online at sba.gov/disaster or through contacting SBA’s Customer Service Center at (800) 659-2955 or via email at disastercustomerservice@sba.gov. For individuals who are deaf or hard of hearing or have a speech disability, telecommunications relay services can be accessed by dialing 7-1-1.
Completed loan applications must be submitted by July 18.
The U.S. Small Business Administration supports American entrepreneurs with resources needed for business ownership growth and recovery from declared disasters through its network of field offices and partnerships with public and private organizations.