Small Business Administration offers drought disaster loans to Colorado small businesses and nonprofits

The Small Business Administration will provide low-interest disaster loans to Colorado small businesses, small agricultural cooperatives, nurseries and private nonprofits with losses tied to drought beginning Nov. 1, 2025; loans can reach $2 million and applications are due by Dec. 7.

The Small Business Administration announced low-interest federal disaster loans for Colorado small businesses and private nonprofits affected by drought. The program applies to losses directly related to drought conditions beginning Nov. 1, 2025. Eligible applicants include small businesses, small agricultural cooperatives, nurseries and private nonprofit organizations, including faith-based groups. The loans are intended to address working capital needs resulting from drought-related hardships. Key details: - Loans of up to $2 million are available. - Interest rates are reported as low as 4% for small businesses and as low as 3.625% for private nonprofits, with terms up to 30 years. - Loan proceeds can cover working capital such as fixed debts, payroll, accounts payable and other bills that could not be paid due to the drought. - Interest does not accrue and payments are not due until 12 months after the date of the first loan disbursement, according to the SBA. - Applications are due no later than Dec. 7; the SBA listed its website, a customer service phone number (800-659-2955) and email ([email protected]) for information and eligibility details. Summary: The program is intended to provide financial support for Colorado entities reporting drought-related losses by covering immediate working capital needs. The SBA set an application deadline of Dec. 7 and provided phone, email and online resources for eligibility and applications. The loans cover reported losses beginning Nov. 1, 2025 and include terms that can extend up to 30 years.