While drought-impacted small businesses in the Beehive State are still hoping for rain, they might be in line for some financial assistance through the U.S. Small Business Administration.
The administration in August announced the availability of low-interest federal disaster loans to small businesses and private nonprofit organizations in the state to offset economic losses caused by drought.
The declaration covers Cache, Daggett, Duchesne, Morgan, Rich, Salt Lake, Summit, Uintah, Wasatch and Weber counties.
Through the declaration, the administration’s Economic Injury Disaster Loan program is available to small businesses, small agricultural cooperatives, nurseries and private nonprofits, including faith-based organizations with financial losses directly related to drought conditions.
The disaster loans won’t be provided to agricultural producers, farmers or ranchers, with the exception of small aquaculture enterprises, the administration said in a release.
As of July, Utah is the only state in the country that is 100% in drought, according to the U.S. Drought Monitor.
Utah is the only state in the US that is 100% in #drought.
— NIDIS Drought.gov (@NOAADrought) July 3, 2025
Since the start of the water year (Oct 1, 2024), precip has been lower than normal and temps warmer than normal.
The Southwest Monsoon offers the best chance of precip this summer. See: https://t.co/N6ONL8ZiZF @NOAA pic.twitter.com/uEwTwu7z7T
The loans are available for working capital needs caused by the drought and are available even if the business or private nonprofits did not suffer any physical damage.
The loans may be used to pay fixed debts, payroll, accounts payable and other bills not paid due to the disaster.
“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 Office of Disaster Recovery and Resilience at the administration, said in a statement. “We’re pleased to offer loans to small businesses and private nonprofits impacted by these disasters.”
The loans can cover up to $2 million with interest rates as low as 4% for small businesses and 3.625% for private nonprofits, and terms up to 30 years. Additionally, interest does not accrue and payments are not due until 12 months after the date of the first loan disbursement.
More information on the administration’s Economic Injury Disaster Loan program can be found here.