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Posted: Jun 08, 2026 2:57 PMUpdated: Jun 08, 2026 2:57 PM
SBA Offering Drought Disaster Loans
Nathan Thompson
The U.S. Small Business Administration is offering low-interest federal disaster loans to eligible small businesses and private nonprofit organizations in parts of Oklahoma and Kansas affected by drought conditions that began Feb. 24.
The disaster declaration covers 10 Oklahoma counties — Craig, Creek, Nowata, Okmulgee, Osage, Pawnee, Rogers, Tulsa, Wagoner and Washington — along with Labette and Montgomery counties in Kansas.
The SBA's Economic Injury Disaster Loan program provides working capital assistance to small businesses, small agricultural cooperatives, nurseries and private nonprofit organizations, including faith-based groups, that have suffered financial losses directly related to the drought. The agency said agricultural producers, farmers and ranchers are generally not eligible for the loans, except for small aquaculture enterprises.
The loans are designed to help organizations meet ordinary financial obligations that cannot be met because of the disaster's economic impact. Funds may be used to cover fixed debts, payroll, accounts payable and other operating expenses, even if the applicant did not sustain physical damage.
"Through a declaration by the U.S. Secretary of Agriculture, SBA provides critical financial assistance to help communities recover," Chris Stallings, associate administrator of the SBA's Office of Disaster Recovery and Resilience, said in a statement. "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 of up to 30 years. The SBA said interest will not begin accruing and payments will not be due until 12 months after the first loan disbursement.
The agency determines loan amounts and repayment terms based on an applicant's financial condition.
Businesses and nonprofit organizations can apply online at the SBA's disaster assistance website. The deadline to submit completed applications is Feb. 1, 2027.
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