SBA Offers Disaster Loans to West Alabama Businesses After Drought

Small businesses and nonprofit organizations across parts of West Alabama may qualify for financial relief following last year’s drought.

The U.S. Small Business Administration (SBA) has announced the availability of low-interest federal disaster loans for eligible small businesses and private nonprofit organizations that experienced economic losses tied to the drought that began on September 23, 2025.

In Alabama, the disaster declaration includes several counties, including Tuscaloosa, Greene, and Pickens, making local businesses in those areas eligible to apply.  Applications can be submitted online at sba.gov/disaster. The deadline to apply for economic injury loans is August 31, 2026.

The assistance is being offered through the SBA’s Economic Injury Disaster Loan (EIDL) program, which provides working capital to help businesses recover from financial strain caused by the disaster. These loans are available even if a business did not suffer physical damage and can be used to cover expenses such as payroll, rent, fixed debts, and other bills that couldn’t be paid due to the drought.

Loan amounts can reach up to $2 million, with interest rates as low as 4% for small businesses and 3.625% for private nonprofits, and repayment terms of up to 30 years. Payments are deferred for the first 12 months, and interest does not accrue during that period.

For more details, including eligibility and all affected counties, businesses are encouraged to review the full SBA release.