The U.S. Small Business Administration has announced the availability of Economic Injury Disaster Loans due to a drought that began on May 5, 2026, and is continuing. According to a September 30 statement, the disaster declaration covers several regions, including Utah counties Kane and Washington, as well as Coconino, La Paz, and Yavapai in Arizona; San Bernardino in California; and Clark and Lincoln in Nevada.
Economic Injury Disaster Loans (EID
Ls) are intended to assist small businesses, small agricultural cooperatives, businesses engaged in aquaculture, and most private, non-profit organizations of all sizes. These working capital loans help entities meet ordinary and necessary financial obligations that cannot be met as a direct result of the disaster. The loans are designed to assist through the disaster recovery period.
Loan terms may reach a maximum of 30 years, with the SBA determining installment payments based on the borrower's financial condition. The maximum interest rate for this program is 4 percent, fixed for the life of the loan. While the law limits EID
Ls to $2,000,000 to alleviate economic injury, the SBA has the authority to waive this limit for businesses that serve as a major source of employment.
Eligibility for these loans is subject to specific restrictions. The applicant business must be located within the declared disaster area, and only uninsured or otherwise uncompensated disaster losses are eligible. Additionally, the economic injury must be a direct result of the declared drought. While nurseries may be eligible for economic injury caused by drought, the law specifies that agricultural enterprises, such as farmers and ranchers, are not eligible for any type of SBA assistance.
Applicants must maintain a credit history acceptable to the SBA and demonstrate the ability to repay the loan. Borrowers may be required to provide collateral, and those with damaged or collateral property in a special flood hazard area must purchase and maintain flood insurance. Applications cannot be used to refinance long-term debts, and applicants who have not complied with the terms of previous SBA loans, such as failing to maintain insurance, are ineligible.
The application filing deadline for these disaster loans is May 17, 2027. Applications may be submitted online via the MySBA Loan Portal at https://lending.sba.gov. For further assistance, individuals can contact the SBA’s Customer Service Center at 1-800-659-2955 or via email at disastercustomerservice@sba.gov.
