The Small Business Association is offering low-interest federal disaster loans for working capital to small businesses economically impacted by the Colorado Highway 133 sinkhole and road closure that occurred May 2 – June 19.
Small nonfarm businesses, small agricultural cooperatives, small businesses engaged in aquaculture and most private non-profit organizations of any size located in Delta, Gunnison, Hinsdale, Montrose and Ouray counties may qualify for Economic Injury Disaster Loans of up to $2 million to help meet financial obligations and operating expenses which could have been met had the disaster not occurred.
These loans may be used to pay fixed debts, payroll, accounts payable and other bills that can’t be paid because of the disaster’s impact. Disaster loans can provide vital economic assistance to small businesses to help overcome the temporary loss of revenue they are experiencing.
Eligibility is based on the financial impact of the disaster only and not on any actual property damage. These loans have an interest rate of 4% for small businesses and 2.375% for private nonprofit organizations with terms up to 30 years and are restricted to small businesses without the financial ability to offset the adverse impact without hardship.
The deadline to apply for economic injury is April 25, 2024.