The U.S. Small Business Administration recently announced the availability of low-interest federal disaster loans for eligible small businesses and private nonprofit organizations impacted by the drought beginning April 1. 

Eligible Counties 

Iowa: Lyon, O'Brien, Osceola, and Sioux 

Minnesota: Nobles and Rock 

South Dakota: Lincoln and Minnehaha 

Who Can Apply 

  • Small businesses 
  • Private nonprofits & faith-based organizations 
  • Small agricultural cooperatives & nurseries 
  • Small aquaculture enterprises 

Loan Assistance Available

Economic Injury Disaster Loans: Working capital assistance for operational expenses caused by the disaster 

Key Loan Details 

  • Up to $2 million in loan funding
  • Interest rates as low as 4% for small businesses and 3.625% for private nonprofit organizations 
  • Loan terms of up to 30 years 
  • No interest or required payments during the first 12 months following disbursement 

Apply online: sba.gov/disaster 
Application Deadline: Economic Injury Disaster Loans: March 29, 2027 

Applicants may call the SBA Customer Service Center with questions regarding their application at (800) 659-2955 or email. For people who are deaf, hard of hearing, or have a speech disability, please dial 7-1-1 to access telecommunications relay services.