SBA Disaster Loans Available for Colorado Drought Victims

SBA Newsroom

Published March 27th, 2026

Detected March 28th, 2026

Summary

The U.S. Small Business Administration (SBA) is reminding eligible small businesses and private nonprofit organizations in Colorado that federal disaster loans are available due to drought. The application deadline for economic injury loans is April 27, 2026, with a 60-day grace period thereafter.

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What changed

The U.S. Small Business Administration (SBA) has issued a disaster declaration making Economic Injury Disaster Loans (EIDLs) available to eligible small businesses and private nonprofit organizations in ten Colorado counties (Chaffee, Clear Creek, Eagle, Fremont, Grand, Jefferson, Lake, Park, Summit, and Teller) affected by drought beginning August 19, 2025. These low-interest loans can provide working capital to cover fixed debts, payroll, and other bills impacted by the disaster, with loan amounts up to $2 million and terms up to 30 years.

Affected entities must apply for these EIDLs by April 27, 2026, although a 60-day grace period will be accepted after the deadline. The SBA encourages eligible businesses and nonprofits to visit sba.gov/disaster or contact their customer service center for application details and assistance. Failure to apply by the deadline may result in the loss of access to this recovery funding.

What to do next

Submit EIDL applications by April 27, 2026.
Contact SBA Customer Service for application assistance if needed.

Source document (simplified)

Disaster news release
CO-20024-02

SBA Relief Still Available to Colorado Small Businesses and Private Nonprofits Affected by Drought

Deadline to apply for economic damage loans approaching Published on

March 27, 2026

by Office of Disaster Recovery & Resilience WASHINGTON — The U.S. Small Business Administration (SBA) is reminding eligible small businesses and private nonprofit (PNP) organizations in Colorado of the April 27 deadline to apply for low interest federal disaster loans to offset economic damage caused by drought beginning Aug. 19, 2025.

The disaster declaration covers the Colorado counties of Chaffee, Clear Creek, Eagle, Fremont, Grand, Jefferson, Lake, Park, Summit and Teller.

Under this declaration, SBA’s Economic Injury Disaster Loan (EIDL) program is available to small businesses, small agricultural cooperatives, nurseries, and PNPs including faith-based 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 PNP 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% for small businesses and 3.625% for PNPs with terms up to 30 years. Interest does not accrue, and payments are not due until 12 months after 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 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.

The deadline to return economic injury applications is April 27. However, after the deadline has passed, there is a 60-day grace period in which SBA will accept applications.

About the U.S. Small Business Administration

The U.S. Small Business Administration helps power the American dream of business ownership. As the only go-to resource and voice for small businesses backed by the strength of the federal government, the SBA empowers entrepreneurs and small business owners with the resources and support they need to start, grow, expand their businesses, or recover from a declared disaster. It delivers services through an extensive network of SBA field offices and partnerships with public and private organizations. To learn more, visit www.sba.gov.

Related programs: Disaster