The U.S. Small Business Administration is offering low-interest federal disaster loans to eligible small businesses and private nonprofit organizations affected by drought conditions that began April 1.
In Iowa, assistance is available in Lyon, O’Brien, Osceola and Sioux counties. Businesses and organizations in Nobles and Rock counties in Minnesota and Lincoln and Minnehaha counties in South Dakota may also apply.
The Economic Injury Disaster Loans provide working capital to help cover operational expenses affected by the drought. Eligible applicants include small businesses, private nonprofits and faith-based organizations, along with small agricultural cooperatives, nurseries and aquaculture enterprises.
Loans of up to $2 million are available. Interest rates may be as low as 4% for small businesses and 3.625% for private nonprofits, with terms of up to 30 years. No interest will accrue, and no payments will be required during the first 12 months following disbursement.
Applications must be submitted by March 29, 2027, at sba.gov/disaster.
Applicants with questions may call the SBA Customer Service Center at 800-659-2955 or email disastercustomerservice@sba.gov. Telecommunications relay services are available by dialing 711.
