Upcoming Event
Free Newsletter
Ridgeway Reservoir. Deposit Photos
Ridgeway Reservoir. Deposit Photos
SBA offers drought relief loans to Colorado businesses
ColoradoBiz Staff //April 10, 2026//
DENVER — The U.S. Small Business Administration is offering low-interest disaster loans to small businesses and private nonprofit organizations in Colorado to offset economic losses caused by the drought that began Nov. 1, 2025.
In Brief:
- SBA offers loans for drought-related economic losses
- Loans available up to $2 million with low interest rates
- Drought declaration covers dozens of Colorado counties
- Applications deadline set for December 7
The declaration covers dozens of Colorado counties, including Adams, Arapahoe, Boulder, Denver, Douglas, El Paso, Jefferson, Larimer, Mesa, Pueblo and Weld, as well as counties in Nebraska, New Mexico, Utah and Wyoming.
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 tied to the drought. The agency does not provide loans to agricultural producers, farmers or ranchers, except for small aquaculture operations.
Loans may be used for working capital needs, including fixed debts, payroll and accounts payable, even if there was no physical damage.
“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.
Loan amounts can reach 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, with payments deferred for 12 months after the first disbursement. Loan terms are based on each applicant’s financial condition.
Applications are available online at sba.gov/disaster. The deadline to apply is Dec. 7.
s
