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 that began on April 15. The declaration includes the counties of Gunnison, Hinsdale, Montrose, Ouray, San Juan, and San Miguel.
The SBA's Economic Injury Disaster Loan (EIDL) program is designed to assist small businesses, small agricultural cooperatives, nurseries, and private nonprofits that have suffered financial losses due to the drought. However, the program does not extend to agricultural producers, farmers, or ranchers unless they are part of small aquaculture enterprises.
EIDLs are intended for working capital needs caused by the disaster and can be used even if there is no physical damage to the business or nonprofit. The loans can cover fixed debts, payroll, accounts payable, and other bills impacted 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, associate administrator of 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."
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 may extend up to 30 years with interest not accruing until 12 months after the first loan disbursement. Loan amounts and terms are determined based on each applicant’s financial condition.
Interested parties can apply online at sba.gov/disaster or contact SBA’s Customer Service Center at (800) 659-2955 or via email at disastercustomerservice@sba.gov for more information about disaster assistance. Telecommunications relay services are available by dialing 7-1-1 for those who are deaf or hard of hearing.
Completed loan applications must be submitted by February 9, 2026.