Utah SBA opens drought disaster loans for small businesses and nonprofits

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Utah SBA drought disaster loans

Highlights

The U.S. Small Business Administration opened low-interest Economic Injury Disaster Loans for small businesses and nonprofits impacted by drought in thirteen Utah counties, plus Moffat (CO) and Sweetwater and Uinta (WY) counties.
Eligible entities can borrow up to $2 million at interest rates as low as 4% for businesses and 3.625% for nonprofits, with repayment terms up to 30 years and first payment due 12 months after disbursement.
Drought loans exclude most agricultural producers but support working capital needs such as payroll and bills, aiming to bolster regional businesses after the USDA disaster declaration.

Drought loan program and eligibility

As announced by the U.S. Small Business Administration, low-interest federal disaster loans are available through its Economic Injury Disaster Loan program for eligible small businesses, small agricultural cooperatives, nurseries and private nonprofit organizations, including faith-based groups, affected by the drought.

The declaration covers Beaver, Daggett, Duchesne, Garfield, Morgan, Piute, Rich, Salt Lake, Sevier, Summit, Uintah, Wasatch and Wayne counties in Utah, along with Moffat County in Colorado and Sweetwater and Uinta counties in Wyoming. Agricultural producers, farmers and ranchers are not eligible for these disaster loans, except for small aquaculture enterprises.

The financing is intended for working capital needs tied to the disaster, even when a business or nonprofit has no physical damage. Funds may be used for fixed debts, payroll, accounts payable and other bills that cannot be paid because of the drought.

Loan terms and regional business impact

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

Chris Stallings, associate administrator of the SBA's Office of Disaster Recovery and Resilience, says the assistance is designed to help communities recover following the U.S. Secretary of Agriculture's declaration. Applications can be submitted online at sba.gov/disaster, and applicants can also contact the SBA Customer Service Center by phone or email for support.

In our earlier article on the SBA’s drought-related Economic Injury Disaster Loan (EIDL) program, we covered the rollout of federal disaster financing for eligible small businesses and private nonprofits in multiple Wyoming counties, with eligibility extended to certain adjacent counties in nearby states. We also highlighted the main terms—loans up to $2 million, rates as low as 4% (3.625% for nonprofits), repayment of up to 30 years, and a 12-month deferral—along with the key limitation that most agricultural producers are excluded except for small aquaculture enterprises.

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