Small businesses and private nonprofits in parts of Alabama, Arkansas, Mississippi and Tennessee may be eligible for federal disaster assistance following a prolonged drought that began Aug. 26, 2025.

The U.S. Small Business Administration (SBA) has announced the availability of low-interest Economic Injury Disaster Loans (EIDLs) to help eligible organizations recover from economic losses tied directly to the drought.

The disaster declaration includes the following counties:

Alabama: Colbert, Franklin, Lamar, Lauderdale, Pickens, and Sumter

Arkansas: Phillips

Mississippi: Alcorn, Benton, Bolivar, Calhoun, Carroll, Chickasaw, Clay, Coahoma, DeSoto, Grenada, Itawamba, Kemper, Lafayette, Leflore, Lowndes, Marshall, Monroe, Montgomery, Noxubee, Oktibbeha, Panola, Pontotoc, Prentiss, Quitman, Sunflower, Tallahatchie, Tate, Tippah, Tishomingo, Tunica, Union, Webster, Winston, and Yalobusha

Tennessee: Fayette, Hardeman, Hardin, McNairy, and Shelby

The loans are intended to cover economic losses caused by the drought. Applicants do not need to have suffered physical damage to qualify. Loan amounts can be up to $2 million, depending on an applicant’s financial condition.

Applicants can apply online at sba.gov/disaster.

For additional information, contact the SBA’s Customer Service Center at (800) 659-2955 or disastercustomerservice@sba.gov. Individuals who are deaf, hard of hearing, or have a speech disability may dial 711 to access telecommunications relay services.