The U.S. Small Business Administration (SBA) has announced the availability of low-interest federal disaster loans for small businesses and private nonprofit (PNP) organizations in Maryland and neighboring states that have suffered economic losses due to drought conditions that began on March 4, 2025.

The disaster declaration encompasses several counties, including Anne Arundel, Baltimore County, Carroll, Frederick, Howard, Montgomery, and Prince George in Maryland, as well as the District of Columbia, Adam and York in Pennsylvania, and Arlington, Fairfax, and Loudoun in Virginia.

Under this declaration,the SBA’s Economic Injury Disaster Loan (EIDL) program is accessible to eligible small businesses,small agricultural cooperatives,nurseries,and PNPs that have experienced financial losses directly related to the drought. It is important to note that the SBA is unable to provide disaster loans to agricultural producers, farmers, or ranchers, with the exception of aquaculture enterprises. Nurseries,however,are eligible to apply for economic injury disaster loans for losses caused by the drought.

EIDLs are designed to cover working capital needs resulting from the disaster,even if the small business or PNP did not experience any physical damage. These loans can be used to cover fixed debts, payroll, accounts payable, and other bills that could not be paid due to the disaster.

“Thru 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.”

The loan amount can reach up to $2 million, with interest rates as low as 4% for small businesses and 3.62% for pnps, and terms extending up to 30 years. Interest does not accrue, and payments are not required until 12 months from the date of the initial loan disbursement. The SBA determines loan amounts and terms based on each applicant’s financial situation.

To apply online, visit sba.gov/disaster. Applicants can also contact SBA’s Customer Service Center at (800) 659-2955 or via email at disastercustomerservice@sba.gov for additional data on SBA disaster assistance. Individuals who are deaf, hard of hearing, or have a speech disability can dial 7-1-1 to access telecommunications relay services.

The deadline for submitting economic injury applications is January 6, 2026.