The U.S. Small Business Administration has announced the availability of low-interest federal disaster loans for small businesses and private nonprofit organizations in Alabama and surrounding areas affected by an ongoing drought that began Dec. 1, 2025.

The assistance is being made available through the SBA’s Economic Injury Disaster Loan program following a disaster declaration by the U.S. Secretary of Agriculture, a news release said.

Eligible small businesses, small agricultural cooperatives, nurseries and private nonprofit organizations — including faith-based organizations — may apply for loans to help offset financial losses directly related to the drought. The SBA cannot provide disaster loans to agricultural producers, farmers or ranchers, except for aquaculture enterprises.

The 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.

It also includes the Florida counties of Escambia, Holmes, Jackson, Okaloosa, Santa Rosa and Walton; the Georgia counties of Chattahoochee, Clay, Early, Harris, Muscogee, Quitman, Seminole, Stewart and Troup; and the Mississippi counties of Clarke, Greene, Kemper, Lauderdale, Noxubee and Wayne.

Economic Injury Disaster Loans are available to help meet working capital needs caused by the disaster, even when a business or nonprofit has not sustained physical damage. Loan funds may be used to pay fixed debts, payroll, accounts payable and other bills that could not be paid because of 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 SBA, said in the release. “We’re pleased to offer loans to small businesses and private nonprofits impacted by these disasters.”

Loan amounts may reach up to $2 million. Interest rates are as low as 4% for small businesses and 3.625% for private nonprofit organizations, with repayment terms of up to 30 years. Interest does not accrue and payments are not due until 12 months after the first loan disbursement. The SBA determines loan amounts and terms based on each applicant’s financial condition.

Applications may be submitted online at www.sba.gov/disaster. For additional information, applicants may contact the SBA Customer Service Center at (800) 659-2955 or email disastercustomerservice@sba.gov. Individuals who are deaf, hard of hearing or have a speech disability may dial 7-1-1 to access telecommunications relay services.

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