By Ethan Faverino |
The U.S. Small Business Administration (SBA) announced the availability of low-interest federal disaster loans for small businesses and private nonprofit organizations experiencing financial losses from flash flooding at Grand Canyon National Park earlier this year.
The disaster declaration, issued October 13, follows a request from Governor Katie Hobbs on October 8 and provides assistance to eligible organizations affected by flooding that occurred between August 29 and September 3.
The declaration covers five Arizona counties, including Coconino, Gila, Mohave, Navajo, and Yavapai, as well as Kane and San Juan Counties in Utah.
Through the SBA’s Economic Injury Disaster Loan (EIDL) program, eligible small businesses, small agricultural cooperatives, and private nonprofit organizations, including faith-based organizations, can apply for loans of up to $2 million to help offset financial losses directly related to the flooding.
The loans are intended to provide working capital for operating expenses that businesses and nonprofits would have otherwise been able to cover had the disaster not occurred. Eligible expenses include fixed debts, payroll, accounts payable, and other financial obligations.
Businesses and nonprofits may qualify for assistance even if they did not sustain physical property damage.
Interest rates are as low as 4% for businesses and 3.625% for private nonprofit organizations, with repayment terms extending up to 30 years. Interest does not accrue, and payments are not required until 12 months after the first loan disbursement.
The SBA determines loan eligibility, amounts, and repayment terms based on each applicant’s financial condition.
“SBA loans help eligible small businesses and private nonprofits cover operating expenses after a disaster, which is crucial for their recovery,” stated Chris Stallings, associate administrator of the SBA’s Office of Disaster Recovery. “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.”
Congressman Eli Crane (R-AZ-02), whose congressional district includes Grand Canyon National Park, also announced the availability of the disaster assistance, encouraging affected businesses and nonprofit organizations to explore the federal program.
“If your business or nonprofit experienced challenges caused by the flooding, I encourage you to review this avenue of assistance from the SBA,” stated Crane. “The EIDL program offers eligible applicants low-interest loans, which can help offset losses from this tragic disaster.”
Crane also emphasized the importance of continued recovery efforts for Grand Canyon communities and highlighted recent congressional action involving the North Rim Restoration Act of 2025.
“Although it’s been a difficult period for park staff, gateway communities, and local businesses, my team and I are committed to doing everything we can to assist with the recovery effort,” added Crane. “Between this week’s announcement and recent Senate action on the North Rim Restoration Act of 2025, I’m hopeful we can help deliver long-term stability to this cherished place.”
Eligible businesses and nonprofit organizations have until July 13, 2027, to submit economic injury disaster loan applications.
Ethan Faverino is a reporter for AZ Free News. You can send him news tips using this link.
