U.S. Small Business Adminstration Announces Economic Injury Distaers Loans for Colorado Counties Due to Drought

Sharing U.S. SBA News Release

Small nonfarm businesses in the following counties are now eligible to apply for low‑interest federal disaster loans from the U.S. Small Business Administration. These loans offset economic losses because of reduced revenues caused by drought that occurred in the following primary counties, announced Director Tanya N. Garfield of SBA’s Disaster Field Operations Center-West.

Declaration Number 15526

This declaration is for a drought with an incident date beginning on March 6, 2018.  The deadline to apply is January 3, 2019.

Primary Counties for Declaration 15526

  • Cheyenne, 
  • Crowley, 
  • Kiowa, 
  • Lincoln and 
  • Pueblo

Neighboring Colorado Counties for Declaration 15526

  • Arapahoe, 
  • Bent, 
  • Custer, 
  • El Paso, 
  • Elbert, 
  • Fremont, 
  • Huerfano, 
  • Kit Carson, 
  • Las Animas, 
  • Otero, 
  • Prowers and 
  • Washington

Declaration Number 15533

This declaration is for a drought with an incident date beginning on May1, 2018.  The deadline to apply is January 10, 2019.

Primary Counties for Declaration 15526

  • Costilla, 
  • Dolores, 
  • La Plata,  
  • Montezuma,
  • Ouray,  
  • Saguache and   
  • San Miguel

Neighboring Colorado Counties for Declaration 15526

  • Alamosa, 
  • Archuleta, 
  • Chaffee
  • Conejos,  
  • Custer
  • Fremont, 
  • Gunnison, 
  • Hinsdale, 
  • Huerfano
  • Las Animas,   
  • Mineral, 
  • Montrose
  • Rio Grande and 
  • San Juan

“SBA eligibility covers both the economic impacts on businesses dependent on farmers and ranchers that have suffered agricultural production losses caused by the disasters and businesses directly impacted by the disasters,” Garfield 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 of up to $2 million to help meet financial obligations and operating expenses which could have been met had the disasters not occurred.

“Eligibility for these loans is based on the financial impact of the disasters only and not on any actual property damage. These loans have an interest rate as low as 3.58 percent for businesses and 2.5 percent 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,” Garfield said.

By law, SBA makes economic injury available when the U.S. Secretary of Agriculture designates an agricultural disaster. The Secretary declared Declaration Number 15526 on May 3, 2018, and Declaration Number 15533 on May 10, 2018.

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

Applicants may apply online, receive additional disaster assistance information and download applications at https://disasterloan.sba.gov/ela. 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. Individuals who are deaf or hard‑of‑hearing may call (800) 877-8339. Completed applications should be mailed to U.S. Small Business Administration, Processing and Disbursement Center, 14925 Kingsport Road, Fort Worth, TX 76155.