SBA Economic Injury Disaster Loans Available to Colorado Small Businesses

Disaster loan update provided by SBA on January 11, 2012.

Small, nonfarm businesses in 43 Colorado counties and neighboring counties in Kansas, Nebraska, New Mexico, Oklahoma and Wyoming are now eligible to apply for low-interest federal disaster loans from the U. S. Small Business Administration (SBA). “These loans offset economic losses because of reduced revenues caused by the drought that began on November 1, 2012, in the following primary counties,” announced Alfred E. Judd, Director of SBA’s Disaster Field Operations Center-West.

Primary Colorado counties:

Adams                 Arapahoe             Baca                      Bent
Chaffee               Cheyenne             Crowley                Custer
Douglas               El Paso                Elbert                    Fremont
Huerfano             Kiowa                  Kit Carson            Lake
Las Animas         Lincoln                Logan                   Morgan
Otero                   Park                     Phillips                 Prowers
Pueblo                Sedgwick             Teller                    Washington
Weld                   Yuma

Neighboring Colorado counties:

Alamosa           Boulder                 Broomfield            Clear Creek
Costilla            Denver                   Eagle                     Gunnison
Jefferson          Larimer                 Pitkin                     Saguache

“SBA eligibility covers both the economic impacts on businesses dependent on farmers and ranchers that have suffered agricultural production losses caused by the disaster and businesses directly impacted by the disaster,” Judd said.

Small, nonfarm businesses, small agricultural cooperatives, small businesses engaged in aquaculture and most private, nonprofit organizations of any size may qualify for Economic Injury Disaster Loans (EIDLs) of up to $2 million to help meet financial obligations and operating expenses which could have been met had the disaster not occurred.

“Eligibility for these loans is based on the financial impact of the disaster only and not on any actual property damage. These loans have an interest rate of 4% for businesses and 3% for private, nonprofit organizations, a maximum term of 30 years, and are available to small businesses and most private, nonprofits without the financial ability to offset the adverse impact without hardship,” Judd said.

By law, SBA makes EIDLs available when the U. S. Secretary of Agriculture designates an agricultural disaster. Secretary Tom Vilsack declared this disaster on January 9, 2013.

Businesses primarily engaged in farming or ranching are not eligible for SBA disaster assistance. Agricultural enterprises should contact the Farm Services Agency (FSA) about the U. S. Department of Agriculture (USDA) assistance made available by the Secretary’s declaration. However, in drought disasters nurseries are eligible for SBA disaster assistance.

Applicants may apply online using the Electronic Loan Application (ELA) via SBA’s secure Web site at

Disaster loan information and application forms are also available from SBA’s Customer Service Center by calling SBA toll-free at (800) 659-2955, emailing, or visiting SBA’s Web site at Individuals who are deaf or hard-of-hearing may call (800) 877‑8339.

Application Deadline

The deadline to apply for these loans is September 9, 2013.