Disaster loans available to Summit County businesses, nonprofits impacted by drought

Small businesses and non-profits affected by drought conditions in Summit County can now apply for federal loans. Photo: Utah Division of Water Resources

SUMMIT COUNTY, Utah — Small businesses and private nonprofit organizations in Summit County affected by ongoing drought conditions may now qualify for low-interest federal disaster loans through the U.S. Small Business Administration (SBA).

The SBA announced this week that Economic Injury Disaster Loans are available to help organizations offset financial losses resulting from drought conditions that began April 14.

Summit County is among 16 Utah counties included in the federal disaster declaration, which was triggered by a designation from the U.S. Secretary of Agriculture. The declaration also covers portions of Idaho and Nevada.

The loans are intended to provide working capital to businesses and nonprofit organizations experiencing economic hardship because of the drought, even if they did not sustain any physical damage.

Eligible applicants include small businesses, small agricultural cooperatives, nurseries, and private nonprofit organizations, including faith-based organizations. Agricultural producers, farmers, and ranchers are generally not eligible for SBA disaster loans.

Funds may be used to cover fixed debts, payroll, accounts payable, and other ordinary operating expenses that businesses may be unable to meet due to drought-related financial impacts.

“Through a declaration by the U.S. Secretary of Agriculture, SBA provides critical financial assistance to help communities recover,” said Chris Stallings, associate administrator of the SBA’s Office of Disaster Recovery and Resilience. “We’re pleased to offer loans to small businesses and private nonprofits impacted by these disasters.”

Loan amounts of up to $2 million are available. Interest rates can be as low as 4% for small businesses and 3.625% for private nonprofit organizations, with repayment terms extending up to 30 years. According to the SBA, interest will not accrue and payments will not be due until 12 months after the first loan disbursement.

The agency said loan terms and amounts will be determined based on each applicant’s financial condition.

Applications can be submitted online through the SBA’s disaster assistance portal. Businesses and nonprofit organizations seeking assistance have until Feb. 1, 2027, to apply.

The SBA’s declaration comes as drought conditions continue to affect parts of Utah, raising concerns about agricultural production, water supplies, and economic impacts across rural and mountain communities.