The U.S. Small Business Administration (SBA) announced the availability of low-interest federal disaster loans to small businesses and private nonprofit organizations in Colorado to offset economic losses caused by drought.
The disaster declaration CO 21150 covers the primary counties of Custer, Dolores, Fremont, Hinsdale, Huerfano, Saguache and San Juan. It includes the neighboring counties of Alamosa, Archuleta, Chaffee, Costilla, El Paso, Gunnison, La Plata, Las Animas, Mineral, Montezuma, Ouray, Park, Pueblo, Rio Grande, San Miguel and Teller in Colorado; and San Juan in Utah.
The declaration covers the drought with an incident date beginning April 1 and continuing.
Under the declaration, the SBA’s Economic Injury Disaster Loan (EIDL) program is available to small businesses, small agricultural cooperatives, nurseries and private nonprofit organizations with financial losses directly related to the disaster.
The SBA is unable to provide disaster loans to agricultural producers, farmers or ranchers, except for small aquaculture enterprises.
EIDLs are available for working capital needs caused by the disaster and are available even if the business or private nonprofit organization did not suffer any physical damage. The loans may be used to pay fixed debts, payroll, accounts payable and other bills not paid due to the disaster.
“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.”
The loan amount can be up to $2 million with interest rates as low as 4 percent for small businesses and 3.62 percent for private nonprofit organizations with terms up to 30 years. Interest does not accrue, and payments are not due until 12 months from the date of the first loan disbursement. The SBA sets loan amounts and terms based on each applicant’s financial condition.
To apply online, visit sba.gov/disaster. Applicants may also call the SBA’s customer service center at (800) 659-2955 or email disastercustomerservice@sba.gov for more information on SBA disaster assistance.
For people who are deaf, hard of hearing, or have a speech disability, please dial 7-1-1 to access telecommunications relay services.
Submit completed loan applications to the SBA no later than Feb. 2, 2026.
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