Small Business Administration Offers Drought Disaster Loans to Colorado Small Businesses and Nonprofits
The Small Business Administration (SBA) has announced the availability of low-interest federal disaster loans for small businesses and private nonprofits in Colorado affected by drought conditions. This initiative is aimed at providing financial relief to entities that have suffered economic losses due to the drought that began on November 1, 2025. Eligible applicants include small businesses, small agricultural cooperatives, nurseries, and private nonprofit organizations, including faith-based groups. The loans can cover up to $2 million with interest rates as low as 4% for small businesses and 3.625% for nonprofits, with repayment terms extending up to 30 years. The loans are intended to assist with working capital needs such as fixed debts, payroll, and other expenses that cannot be met due to the drought's impact. Importantly, interest does not accrue, and payments are deferred for 12 months after the first loan disbursement. 
