Maryland businesses impacted by drought can apply for federal disaster loans

The U.S. Small Business Administration (SBA) is offering federal disaster loans to eligible Maryland businesses and private nonprofit organizations that have been impacted by the state's ongoing drought.

The low-interest loans are designed for eligible organizations that have been affected by drought conditions in the state from April 21, the SBA said in a news release. 

Eligible locations include Baltimore City, along with Anne Arundel, Baltimore, Caroline, Carroll, Cecil, Dorchester, Harford, Howard, Kent, Queen Anne's, Somerset, Talbot, Wicomico and Worcester counties. 

In addition to small businesses, the loans are available for private nonprofits and faith-based organizations, small agricultural cooperatives and nurseries and small aquaculture enterprises, the release said.

The assistance is considered an economic injury disaster loan, which provides working capital assistance for operational expenses caused by a drought-related disaster.

The loans can reach $2 million in funding, with interest rates as low as 4% for small businesses and 3.625% for private nonprofit organizations.

The deadline to apply for the loans is May 10, 2027. The application can be submitted at sba.gov/disaster.