SBA Drought Disaster Loans for Colorado Businesses

SBA Newsroom

Published March 13th, 2026

Detected March 14th, 2026

Summary

The U.S. Small Business Administration (SBA) is reminding eligible small businesses and private nonprofit organizations in Colorado that the deadline to apply for low-interest federal disaster loans due to drought is April 13, 2026. These Economic Injury Disaster Loans (EIDLs) can provide working capital for businesses affected by drought conditions.

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What changed

The U.S. Small Business Administration (SBA) has issued a notice reminding eligible small businesses and private nonprofit organizations in specific Colorado counties (Chaffee, Eagle, Lake, Park, Pitkin, and Summit) that the deadline to apply for Economic Injury Disaster Loans (EIDLs) is April 13, 2026. These loans are intended to offset economic losses caused by drought beginning August 5, 2025, and can be used for working capital needs, including paying fixed debts, payroll, and other bills.

Affected businesses and nonprofits must submit their applications by April 13, 2026, although a 60-day grace period will be accepted after the deadline. The loans offer interest rates as low as 4% for small businesses and 3.625% for PNPs, with terms up to 30 years, and payments are deferred for 12 months. Compliance officers should ensure that any affected entities within their organization or client base are aware of this deadline and the application process via sba.gov/disaster.

What to do next

Review eligibility criteria for SBA Economic Injury Disaster Loans for drought-related losses.
Submit loan applications to the SBA by April 13, 2026, or within the subsequent 60-day grace period.
Advise affected Colorado small businesses and private nonprofits of the application deadline and available loan terms.

Source document (simplified)

Disaster news release
CO-20023-02

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

Deadline to apply for economic injury loans approaching Published on

March 13, 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 13, 2026 deadline to apply for low interest federal disaster loans to offset economic losses caused by drought beginning Aug. 5, 2025.

The disaster declaration covers the Colorado counties of Chaffee, Eagle, Lake, Park, Pitkin and Summit.

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 small business or 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 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 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 April 13. 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