SBA Offers Low-Interest Disaster Loans to Arkansas Businesses Impacted by Drought

Small businesses and nonprofit organizations across Arkansas now have access to federal disaster assistance following prolonged drought conditions that began Nov. 1, 2025.

The U.S. Small Business Administration (SBA) announced it is offering low-interest loans through its Economic Injury Disaster Loan (EIDL) program after a disaster declaration was issued by the U.S. Secretary of Agriculture. The program is designed to help organizations recover from financial losses tied directly to the drought.

Eligible counties in Arkansas include Howard, Sevier, Little River, Hempstead, Polk, Miller and Lafayette, along with many others statewide. The declaration also extends to neighboring counties and parishes in Louisiana, Missouri, Mississippi, Oklahoma, Tennessee and Texas.

The assistance is available to small businesses, private nonprofit organizations, small agricultural cooperatives and nurseries that have experienced economic hardship due to the drought. While most agricultural producers, farmers and ranchers are not eligible, small aquaculture operations may qualify.

Loan funds can be used to cover working capital needs, even if no physical damage occurred. This includes expenses such as fixed debts, payroll, accounts payable and other bills that could not be met because of the disaster.

Applicants may qualify for loans up to $2 million, with interest rates as low as 4 percent for small businesses and 3.625 percent for private nonprofits. Repayment terms can extend up to 30 years, depending on financial circumstances.

The SBA also noted that interest will not begin to accrue and payments will not be due until 12 months after the first loan disbursement.

The deadline to apply is Dec. 7. Businesses can submit applications online at sba.gov/disaster or obtain more information by calling the SBA Customer Service Center at 800-659-2955.