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 Colorado affected by drought conditions. This initiative aims to mitigate economic losses resulting from the drought.
The SBA's disaster declarations include specific counties in Colorado, with some neighboring counties also eligible for assistance. The declarations cover incidents beginning on April 1, 2025, and May 27, 2025, respectively, with a deadline for applications set for February 2, 2026.
Eligible entities under these declarations can access the Economic Injury Disaster Loan (EIDL) program. This program supports small businesses, small agricultural cooperatives, nurseries, and private nonprofits experiencing financial losses directly related to the drought. However, it does not extend to agricultural producers, farmers, or ranchers except for small aquaculture enterprises.
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.
Loan amounts can reach up to $2 million with interest rates as low as 4% for small businesses and 3.62% for private nonprofits. Terms can extend up to 30 years. Interest does not accrue 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 SBA’s Customer Service Center at (800) 659-2955 or via email at disastercustomerservice@sba.gov. Telecommunications relay services are available for individuals who are deaf or hard of hearing by dialing 7-1-1.
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