Small Business Administration offers disaster loans to businesses affected by drought

SALT LAKE CITY — The U.S. Small Business Administration is offering low-interest federal disaster loans to small businesses and private nonprofits across parts of Utah, Idaho and Wyoming.

The loans are available to eligible small businesses impacted by drought since May 1, according to the SBA. Eligible counties include Cache, Morgan, Rich, Summit and Weber in Utah; Bear Lake and Franklin counties in Idaho; and Lincoln and Uinta counties in Wyoming.

Cortney Jones, a crop insurance agent with the Leavitt Group, said the dry conditions have created challenges for more than just farmers and growers.

"This year was extremely tough. We knew going into it that we were going to be short water," said Jones.

Who can apply for the drought assistance?

Eligible applicants for this particular program include small businesses, private nonprofits and faith-based organizations, small agricultural cooperatives and nurseries, and small aquaculture enterprises.

The SBA said the loans can help cover operating expenses affected by the drought. Loans of up to $2 million are available, with interest rates as low as 4% for small businesses and 3.625% for private nonprofits. Loan terms can extend up to 30 years, with no interest or required payments during the first 12 months after the loan is dispersed.

Jones said federal programs can provide a safety net for businesses dealing with unpredictable weather and rising costs.

"And with particular ... businesses, the uncertainty of the economy, the drought ... frost, the weather patterns — it allows you to know that you have an advantage .... to help you make it through," Jones said.

How to apply for an SBA disaster loan

Eligibility and loan amounts are determined by the SBA. The application deadline is May 17, 2027. Businesses and organizations can find more information on the SBA website.