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SBA offers drought relief loans to Colorado businesses and nonprofits
ColoradoBiz Staff //May 11, 2026//
Deposit Photos
Deposit Photos
SBA offers drought relief loans to Colorado businesses and nonprofits
ColoradoBiz Staff //May 11, 2026//
In Brief:
- SBA provides loans up to $2 million for drought relief
- Loans available to small businesses and private nonprofits
- Interest rates as low as 4% for businesses, 3.625% for nonprofits
- Eligible counties include Adams, El Paso, Pueblo, and others
WASHINGTON — The U.S. Small Business Administration is offering low-interest federal disaster loans to Colorado small businesses and private nonprofit organizations affected by drought that began April 14.
The declaration covers the Colorado counties of Adams, Arapahoe, Bent, Cheyenne, Crowley, Douglas, El Paso, Elbert, Kiowa, Kit Carson, Las Animas, Lincoln, Logan, Morgan, Otero, Pueblo, Washington and Yuma, along with Cheyenne, Sherman and Wallace counties in Kansas.
The SBA’s Economic Injury Disaster Loan program is available to small businesses, small agricultural cooperatives, nurseries and private nonprofits, including faith-based organizations, that experienced financial losses related to the drought. Agricultural producers, farmers and ranchers are not eligible, except for small aquaculture enterprises.
The loans can be used for working capital needs including fixed debts, payroll, accounts payable and other bills that could not be paid because of the disaster. Businesses and nonprofits do not need to have physical damage to qualify.
“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 SBA’s Office of Disaster Recovery and Resilience.
Loan amounts are available up to $2 million with interest rates as low as 4% for small businesses and 3.625% for private nonprofits. Terms can extend up to 30 years. Interest does not accrue and payments are deferred for 12 months after the first loan disbursement.
Applications are available online at the SBA disaster assistance website. Applicants can also contact the SBA Customer Service Center at 800-659-2955 or email [email protected] for more information.
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