SBA opens disaster loan program for Georgia businesses hit by drought

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Dan Blystone

22 hours ago

SBA opens disaster loan program for Georgia businesses hit by drought — SBA aid for drought losses

Federal relief is becoming available for Georgia small businesses and private nonprofits facing economic losses from drought conditions that begin on Dec. 15, 2025. The assistance also extends to eligible entities in neighboring counties across Alabama, Florida, North Carolina, South Carolina, and Tennessee that fall within the disaster declaration.

Highlights

The U.S. Small Business Administration is offering Economic Injury Disaster Loans up to $2 million for drought-impacted Georgia businesses, nonprofits, and nurseries.
Interest rates are as low as 4% for small businesses and 3.625% for private nonprofits, with deferred interest and payments for 12 months and loan terms up to 30 years.
The application deadline for eligible organizations in affected counties is December 10, with loans covering working capital and essential operating expenses.

Loan terms and eligibility scope

As announced by the U.S. Small Business Administration, the agency is making low-interest Economic Injury Disaster Loans available to eligible small businesses, small agricultural cooperatives, nurseries, and private nonprofit organizations, including faith-based groups, affected by the drought declaration.

The program covers a wide swath of Georgia counties, along with designated counties in nearby states tied to the declaration. The loans are intended for working capital needs caused by the disaster and remain available even when an applicant has not suffered physical property damage.

Loan amounts can reach up to $2 million, with interest rates as low as 4% for small businesses and 3.625% for private nonprofits. Terms can extend up to 30 years, while interest does not accrue and payments are not due until 12 months after the first loan disbursement; the SBA says final loan amounts and repayment terms depend on each applicant's financial condition.

The agency says the loans may be used to cover fixed debts, payroll, accounts payable, and other bills that cannot be paid because of the disaster. Agricultural producers, farmers, and ranchers are not eligible for these disaster loans, except for aquaculture enterprises.

Regional recovery support and application deadline

Chris Stallings, associate administrator of the Office of Disaster Recovery and Resilience at the SBA, says the assistance follows a declaration by the U.S. Secretary of Agriculture and is intended to help affected communities recover from the economic impact of the drought.

The declaration's broad geographic reach underscores the extent of drought-related strain on local enterprises across the Southeast, particularly smaller organizations that may face cash flow pressure without direct physical damage. For businesses and nonprofits in covered areas, the program offers a federal backstop to manage operating costs while drought conditions disrupt revenue and normal payment cycles.

The deadline to return economic injury applications is Dec. 10.

Our earlier article on the U.S. Justice Department’s Model Cities Initiative detailed a new federal grant competition that would direct nearly $300 million to a small number of cities to support coordinated public safety strategies. We noted that the funding could cover staffing, technology upgrades and community programs such as behavioral health, reentry and youth prevention, with applications due September 1 and initial award decisions expected in late 2026.

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