Under the Economic Injury Disaster Loan (EIDL) program, eligible businesses—including small agricultural cooperatives, nurseries, and PNPs—can apply for working capital loans to cover expenses such as payroll, fixed debts, and accounts payable. While agricultural producers, farmers, and ranchers are generally excluded, small aquaculture enterprises remain eligible.
Chris Stallings, associate administrator of the Office of Disaster Recovery and Resilience, emphasized the importance of these loans, stating,
“Through a declaration by the U.S. Secretary of Agriculture, SBA provides critical financial assistance to help communities recover.”
Loan amounts can reach $2 million, with interest rates as low as 4% for small businesses and 3.62% for PNPs, with repayment terms extending up to 30 years. Additionally, interest does not accrue, and payments are deferred for 12 months after the first loan disbursement.
Colorado is not alone in facing severe drought conditions. The SBA has extended similar relief efforts to Texas, where small businesses and nonprofits in counties such as Austin, Bastrop, and Gonzales can apply for EIDL assistance. Additionally, past declarations have included New Jersey, Delaware, New York, and Pennsylvania, where businesses impacted by drought and excessive heat were eligible for financial aid.
Drought conditions continue to worsen across the United States, affecting over 35 states. Severe drought (D2) to exceptional drought (D4) classifications have been reported in Arizona, California, Colorado, Florida, Hawaii, Kansas, Maryland, Michigan, Montana, Nebraska, Nevada, New Mexico, North Carolina, North Dakota, Oklahoma, Pennsylvania, South Carolina, South Dakota, Texas, Utah, Virginia, West Virginia, and Wyoming.
The U.S. Drought Monitor reports that 27.92% of the country is currently experiencing drought, impacting 144.9 million acres of crops and affecting over 80 million people. While some regions, such as the East Coast, have seen improvements, conditions in the Southwest and Midwest continue to deteriorate.
Businesses and nonprofits seeking financial relief can apply online at sba.gov/disaster or contact the SBA Customer Service Center at (800) 659-2955. For individuals with hearing or speech disabilities, 7-1-1 telecommunications relay services are available.
As drought conditions persist, federal assistance remains a crucial lifeline for businesses struggling to stay afloat. The SBA’s ongoing efforts aim to mitigate economic losses and support recovery in affected communities.
