Small Business Administration offering drought disaster loans to Colorado small businesses, nonprofits

April 12, 2026 - 03:53

The U.S. Small Business Administration has announced the availability of low-interest federal disaster loans for Colorado small businesses and private nonprofit organizations suffering financial losses due to ongoing drought conditions. The declaration covers primary counties impacted by the drought, including Archuleta, La Plata, and San Juan, along with several neighboring counties eligible for assistance.

These Economic Injury Disaster Loans are designed to help meet working capital needs caused by the disaster. Eligible entities can borrow up to $2 million to offset financial obligations and operating expenses they could have met had the drought not occurred. The loans carry interest rates as low as 4 percent for businesses and 3.25 percent for private nonprofits, with terms extending up to 30 years.

The SBA emphasizes that the funds are intended to alleviate economic injury from the drought, not for physical property damage. Eligibility is based on the financial impact of the drought, not necessarily any physical damage to a business's assets. Small businesses and nonprofits in the designated areas are urged to apply online for the assistance, which can provide a crucial financial bridge during a period of significant environmental stress. The application deadline for returning economic injury forms is set for early next year.