SBA Offers Disaster Loans to Arkansas Businesses Hit by Drought

Low-interest federal loans available to small businesses, nonprofits impacted by severe drought conditions

Apr. 10, 2026 at 8:53pm

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A high-end, photorealistic studio still-life photograph featuring a stack of official government documents, a pen, and a calculator on a clean, white background, symbolizing the bureaucratic process of applying for and securing disaster relief loans.The SBA's disaster loan program offers a financial lifeline to Arkansas small businesses struggling with the economic impacts of the ongoing drought.Benton Today

The U.S. Small Business Administration has announced that small businesses and private nonprofit organizations in Arkansas can apply for low-interest federal disaster loans to offset economic losses caused by the ongoing drought affecting the state. The declaration covers 75 counties, and the SBA says loan amounts can be up to $2 million with interest rates as low as 4% for small businesses and 3.625% for nonprofits.

Why it matters

Drought can have a devastating impact on small businesses and local economies, especially in agriculture-dependent regions. This SBA disaster relief program provides critical financial assistance to help Arkansas communities recover and rebuild from the economic fallout of the drought.

The details

Under the SBA declaration, the Economic Injury Disaster Loan (EIDL) program is available to eligible small businesses, small agricultural cooperatives, nurseries, and private nonprofit organizations that have suffered financial losses directly related to the drought. Disaster loans cannot be provided to agricultural producers, farmers, or ranchers, except for small aquaculture enterprises.

  • The SBA announcement was made on Friday, April 10, 2026.
  • The application deadline for the disaster loans is December 7, 2026.

The players

U.S. Small Business Administration

A federal government agency that provides support to small businesses, including disaster relief loans.

Chris Stallings

Associate administrator of the Office of Disaster Recovery and Resilience at the SBA.

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What they’re saying

“Through a declaration by the U.S. Secretary of Agriculture, SBA provides critical financial assistance to help communities recover.”

— Chris Stallings, Associate Administrator, Office of Disaster Recovery and Resilience, SBA

What’s next

Small businesses and nonprofits in the affected Arkansas counties have until December 7, 2026 to apply for the SBA's low-interest disaster loans.

The takeaway

This SBA disaster relief program is a vital lifeline for small businesses and organizations in Arkansas struggling with the economic impacts of the ongoing drought. By providing access to low-interest loans, the SBA is helping these enterprises stay afloat and support their local communities during a challenging time.