Small businesses operating in areas of the US where Secretaries of Agriculture have declared drought disasters are eligible for an Economic Injury Disaster Loan (EIDL loan).
The Small Business Administration recently added a number of western states where small businesses can qualify an EIDL loan due to drought conditions. You can search by state and county to see if you are in a declared drought disaster area.
Some of the states and counties are recent declarations, and some are continuing since 2021. You can still get an EIDL from a state drought disaster declaration from 2021.
EIDL Loans Available to Small Businesses Affected by Drought
The current list of states where small businesses can qualify for an EIDL loan due to drought are:
- Idaho
- North Dakota
- Nevada
- Oregon
- Texas
- Utah
- Washington
- Nebraska
- South Dakota
- Hawaii
- Kansas
- Louisiana
- Arizona
- Mississippi
- Wyoming
- Arkansas
- Colorado
- New Mexico
- Oklahoma
- California
- Iowa
- Montana
- Minnesota
- Maine
According to US drought monitoring from the National Weather Service, 47.5% of the US is currently experiencing drought conditions. It’s expected that additional counties and states will be added to the list.
Currently there are 25 states on the list. In the 2013 drought the list eventually had 34 states.
EIDL Amounts and Applications
EIDLs vary in amount and term. The largest a small business can get is a 30-year loan up to $2 million with an interest rate no higher than 4%.
Here’s how to apply:
- Apply online via the SBA website or by phone, 800-659-2955.
- You’ll need to sign IRS 4506-T as part of the application. The form allows the IRS to send copies of your tax returns to the SBA.
- An SBA inspector will come to your business and meet with you.
- You’ll wait 2-4 weeks for a decision.
- If approved you’ll sign the paperwork, receive the money, and be linked to a SBA case manager.
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