SBA Opens Drought Disaster Loans for Colorado Firms
Colorado businesses and private nonprofits affected by the November 1, 2025 drought may apply for federal economic injury loans until December 7.
Updated on Nov. 12, 2026 in Agriculture
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Colorado small businesses, private nonprofits, faith-based organizations, agricultural cooperatives, nurseries and aquaculture enterprises affected by the drought that began November 1, 2025 may apply for SBA economic injury disaster loans. The application deadline is December 7, and Grand County is among the eligible Colorado counties.
Why it matters
The loans are designed to provide working capital for operating expenses that the drought has made harder to cover. For Colorado operators in affected counties, the program offers a federal financing option tied to a fixed deadline.
Successful applicants may borrow up to $2 million, with interest as low as 3.625% for private nonprofits and repayment terms of up to 30 years. No interest or payments are due during the first 12 months after disbursement, and the source does not report how many applications have been filed.
The players
U.S. Small Business Administration (SBA)
The SBA is the federal agency that supports small businesses and administers the economic injury disaster loan program available to Colorado applicants.
The details
Eligible applicants can apply online at sba.gov/disaster or call the SBA Customer Service Center at (800) 659-2955 with application questions. The loans cover operational expenses caused by the November 1, 2025 drought.
Timeline
November 1, 2025: Drought affecting Colorado businesses and nonprofits occurs.
December 7: Deadline to apply for economic injury disaster loans.
Market Landscape
The SBA economic injury disaster loan program is the federal mechanism that Colorado agricultural operators, nurseries and nonprofits can use when drought disrupts operations. Its terms, including up to 30-year repayment and a 12-month payment holiday, position it as a longer-horizon financing option rather than emergency grant aid.
Eligible Colorado businesses, nonprofits, and agricultural cooperatives can apply online at sba.gov/disaster or call (800) 659-2955 before December 7. Borrowers receive up to $2 million with no required payments for the first 12 months after disbursement.
The takeaway
Affected Colorado operators should review eligibility and submit applications before the December 7 deadline. Starting early gives time to gather the financial records the application requires.
What happens next
The application deadline for economic injury disaster loans is December 7.
Further reading
Explore more Agriculture coverage affecting Colorado producers and nurseries.
More information
Apply for an SBA economic injury disaster loan through the official application portal.
Source note: This article includes information reported by Sky Hi News.
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