By Matthew Holloway |
The U.S. Small Business Administration has opened low-interest federal disaster loans to small businesses and private nonprofit organizations that suffered economic losses from the Pocket Fire.
The SBA issued the disaster declaration Aug. 11 after receiving a request from Arizona Gov. Katie Hobbs on Aug. 7. The declaration covers Coconino, Gila, La Paz, Maricopa, Mohave, Navajo, and Yavapai counties in Arizona, along with Kane and San Juan counties in Utah.
Businesses and private nonprofits in the affected counties may apply through the SBA’s Economic Injury Disaster Loan program (EIDL). Eligible applicants include small businesses, small agricultural cooperatives, and private nonprofit organizations, including faith-based organizations, that suffered financial losses directly related to the fire.
The SBA said agricultural producers, farmers, and ranchers generally are not eligible for disaster loans under the declaration, with an exception for aquaculture enterprises.
Economic Injury Disaster Loans may be used for working capital expenses including fixed debts, payroll, accounts payable, and other bills that could not be paid because of the disaster. Applicants may qualify even if their business or nonprofit did not sustain physical damage.
Loans are available for up to $2 million, with interest rates as low as 4% for businesses and 3.625% for private nonprofits. Repayment terms may extend as long as 30 years. Interest does not accrue, and payments are not required during the first 12 months after the initial loan disbursement.
“SBA loans help eligible small businesses and private nonprofits cover operating expenses after a disaster, which is crucial for their recovery,” said Chris Stallings, Associate Administrator of the Office of Disaster Recovery and Resilience at SBA. “These loans not only help business owners get back on their feet but also play a key role in sustaining local economies in the aftermath of a disaster.”
The SBA determines eligibility, loan amounts, and repayment terms based on each applicant’s financial condition.
“If your business or nonprofit experienced challenges caused by the Pocket Fire, I encourage you to review this avenue of assistance from the SBA,” said Rep. Eli Crane (R-AZ02). “The EIDL program offers eligible applicants low-interest loans, which can help offset losses from this disaster.”
Crane also thanked SBA Administrator Kelly Loeffler and the agency for issuing the declaration and encouraged affected Arizonans to examine the assistance available through the program.
The Pocket Fire began June 19 about seven miles north of Sedona. The fire remained at zero percent containment through June 30, 12 days after it began, and ultimately burned more than 27,000 acres. The Arizona Emergency Information Network reported on July 30 that the fire had reached 100% containment, allowing officials to substantially reduce the surrounding closure area.
The SBA has also opened a Business Recovery Center at the Sedona Chamber of Commerce Administrative Office, 45 Sunset Drive. SBA representatives are available Monday through Friday from 9 a.m. to 5 p.m. to answer questions and assist applicants. Walk-ins are accepted, and appointments may be scheduled in advance.
Crane’s office also publicized the availability of SBA federal disaster loans following the 2025 Dragon Bravo and White Sage fires.
Applications can also be submitted through the SBA’s disaster assistance website. The deadline for Economic Injury Disaster Loan applications related to the Pocket Fire is May 11, 2027.
Matthew Holloway is a senior reporter for AZ Free News. Follow him on X for his latest stories, or email tips to Matthew@azfreenews.com.
