Maryland businesses impacted by drought can apply for federal disaster loans

September 24, 2026 - 21:15

Federal assistance is now available for Maryland businesses and private nonprofit organizations struggling with the economic fallout of recent drought conditions. The U.S. Small Business Administration has opened applications for federal disaster loans designed to offset financial losses caused by the dry weather.

The program targets small businesses, agricultural cooperatives, and similar operations that depend on farming or other weather sensitive industries. Eligibility extends to those that suffered substantial economic injury, even if they did not experience physical damage to property or equipment. The loans can be used to cover fixed debts, payroll, accounts payable, and other bills that have become difficult to manage as revenue declined.

Interest rates for these loans are set at favorable levels, with long repayment terms available to help borrowers recover without adding excessive pressure. Applicants are encouraged to apply as soon as possible, since funds are limited and processing can take time.

Local economic development officials say the drought has affected a wide range of operations across the state, from family farms to suppliers and service providers that rely on agricultural activity. They urge business owners to review the criteria and submit applications promptly.

For many small operations, these loans may be the difference between staying open and shutting down. Business owners who believe they qualify should gather financial records and contact the SBA or a local small business development center for guidance on the application process.