The U.S. Small Business Administration (SBA) has announced that small businesses and private nonprofit organizations in Maryland have until July 25 to apply for federal disaster loans. These loans aim to mitigate economic losses due to the drought that began on November 19.
The disaster declaration includes several counties in Maryland: Anne Arundel, Caroline, Kent, Queen Anne’s, and Talbot. It also covers Kent County in Delaware.
Through this declaration, the SBA's Economic Injury Disaster Loan (EIDL) program is available to small businesses, small agricultural cooperatives, nurseries, and private nonprofits with financial losses directly related to the drought. However, agricultural producers, farmers, or ranchers are not eligible for these loans unless they operate small aquaculture enterprises.
EIDLs can be used for working capital needs caused by the disaster even if there was no physical damage. They may cover fixed debts, payrolls, accounts payable, and other bills affected by 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 Office of Disaster Recovery and Resilience at the SBA. “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 3.65% for private nonprofits. The loan terms can extend up to 30 years with interest deferral until one year after disbursement. Loan amounts and terms depend on each applicant's financial situation.
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.
The deadline for submitting economic injury applications is July 25, 2025.