Deadline approaching to apply for SBA drought disaster loans

Eligible small businesses in Utah have until May 8 to apply for low-interest federal disaster loans to offset economic losses caused by the current drought. 

Under the disaster declaration, losses incurred since July 15, 2025, the official beginning of the drought, qualify businesses for the loan program. 

The disaster declaration covers the Utah counties of Box Elder, Carbon, Davis, Duchesne, Juab, Morgan, Rich, Salt Lake, Sanpete, Summit, Tooele, Utah, Wasatch and Weber.

Under this declaration, SBA’s Economic Injury Disaster Loan (EIDL) program is available to small businesses, small agricultural cooperatives, nurseries and nonprofits, including faith-based organizations, impacted by 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 nonprofit 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 percent for small businesses and 3.625 percent for nonprofits 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.

Eligible businesses can apply online at sba.gov/disaster or by calling the SBA Customer Service Center at 800- 659-2955 or by email disastercustomerservice@sba.gov.