SBA offers low-interest disaster loans to businesses in many Black Belt counties hurt by drought

The U.S. Small Business Administration (SBA) announced the availability of low-interest federal disaster loans to small businesses and private nonprofit (PNP) organizations in Alabama to offset economic losses caused by the drought occurring on Dec. 1, 2025, and continuing.

The disaster declaration covers the Alabama counties of Autauga, Baldwin, Barbour, Bibb, Bullock, Butler, Chambers, Chilton, Choctaw, Clarke, Clay, Coffee, Conecuh, Coosa, Covington, Crenshaw, Dale, Dallas, Elmore, Escambia, Geneva, Greene, Hale, Henry, Houston, Lee, Lowndes, Macon, Marengo, Mobile, Monroe, Montgomery, Perry, Pickens, Pike, Randolph, Russell, Sumter, Tallapoosa, Tuscaloosa, Washington and Wilcox, the Florida counties of Escambia, Holmes, Jackson, Okaloosa, Santa Rosa, and Walton, the Georgia counties of Chattahoochee, Clay, Early, Harris, Muscogee, Quitman, Seminole, Stewart, Troup, as well as the Mississippi counties of Clarke, Greene, Kemper, Lauderdale, Noxubee and Wayne.

Under this declaration, the SBA’s Economic Injury Disaster Loan (EIDL) program is available to eligible small businesses, small agricultural cooperatives, nurseries and PNPs — including faith-based organizations — with financial losses directly related to this disaster. The SBA is unable to provide disaster loans to agricultural producers, farmers, or ranchers, except for aquaculture enterprises.

EIDLs are available for working capital needs caused by the disaster and are available even if the small business or PNP did not suffer any physical damage. The loans may be used to pay fixed debts, payroll, accounts payable, and other bills which could not be paid due to the disaster.

“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 Office of Disaster Recovery and Resilience at the SBA. “We’re pleased to offer loans to small businesses and private nonprofits impacted by these disasters.” 

The loan amount can be up to $2 million with interest rates as low as 4% for small businesses and 3.625% for PNPs, with terms of up to 30 years. Interest does not accrue, and payments are not due until 12 months from the date of the first loan disbursement. The SBA sets loan amounts and terms based on each applicant’s financial condition.

To apply online visit sba.gov/disaster. Applicants may also call SBA’s Customer Service Center at (800) 659-2955 or email disastercustomerservice@sba.gov for more information on SBA disaster assistance. For people who are deaf, hard of hearing, or have a speech disability, please dial 7-1-1 to access telecommunications relay services.

The deadline to return economic injury applications is Dec. 7.