By Scout Nelson
The U.S. Small Business Administration (SBA) has announced that small businesses and private nonprofit organizations in Kansas can now apply for low-interest federal disaster loans. These loans are designed to help offset economic losses caused by drought beginning on May 20, 2025.
This disaster declaration applies to the Kansas counties of Decatur, Graham, Norton, Phillips, Rawlins, Sheridan, and Thomas, as well as the Nebraska counties of Furnas, Harlan, and Red Willow.
Eligible applicants include small businesses, small agricultural cooperatives, nurseries, and private nonprofits—including faith-based organizations—that have experienced financial losses directly due to the drought. Agricultural producers, farmers, and ranchers are not eligible unless they operate small aquaculture businesses.
The SBA’s Economic Injury Disaster Loans (EIDL) program provides funding to cover working capital needs caused by the drought. These funds can be used for fixed debts, payroll, accounts payable, and other regular bills that could not be paid because of the disaster. The loans are available even if no physical damage was sustained.
“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.”
Loan amounts can be as high as $2 million. Interest rates are as low as 4% for businesses and 3.625% for private nonprofits, with repayment terms extending up to 30 years. Borrowers are not required to make payments or pay interest until 12 months after the first disbursement.
Applications must be submitted by March 16, 2026. Visit sba.gov/disaster or call 800-659-2955 to apply or learn more.
Photo Credit:gettyimages-zhuda
Categories: Kansas, Business, Government & Policy, Weather