Small businesses affected by two Colorado wildfires may now qualify for federal economic injury financing under disaster declarations published by the U.S. Small Business Administration.
The declarations, dated October 23, 2026, were published in the Federal Register on October 28.
They cover businesses affected by the Elk Fire and Willow Fire, with separate geographic eligibility areas for each disaster.
Both declarations establish July 23, 2027, as the deadline for Economic Injury Disaster Loan applications.
The financing is intended to help qualifying businesses address substantial economic losses resulting from the fires.
Elk Fire Declaration Covers Eight Counties
The first declaration concerns the Elk Fire.
The SBA identifies Hinsdale County as the primary affected county.
The declaration also includes seven contiguous Colorado counties: Archuleta, Gunnison, La Plata, Mineral, Ouray, Saguache, and San Juan.
The approved incident period runs from July 9 through October 1, 2026.
Qualifying businesses in the designated area may apply for economic injury assistance when they can demonstrate substantial financial disruption directly associated with the fire.
The declaration does not establish that every business within these counties experienced qualifying losses.
Willow Fire Declaration Covers Six Counties
A separate declaration addresses the Willow Fire.
Lake County is identified as the primary affected county.
The contiguous counties included in this declaration are Chaffee, Eagle, Park, Pitkin, and Summit.
The approved incident period extends from June 28 through September 16, 2026.
Businesses must demonstrate economic injury associated with the Willow Fire during the applicable disaster period.
The two declarations cover different incidents and geographic areas.
Applicants should identify the correct disaster when seeking assistance.
Loans Help Businesses Meet Operating Expenses
The SBA’s Economic Injury Disaster Loan program provides working capital to qualifying small businesses and certain other eligible organizations.
The program is designed for businesses unable to meet ordinary and necessary financial obligations because of a declared disaster.
Potential uses include rent, utilities, fixed debt payments, and other qualifying operating expenses.
Businesses may qualify even when their buildings or equipment were not physically damaged.
However, applicants must demonstrate substantial economic injury.
The SBA explains that reduced sales or lost anticipated profits alone do not automatically satisfy the program’s requirements.
Applicants must show that the disaster has affected their ability to meet financial obligations.
These are repayable loans rather than grants.
Interest Rates Established
The Federal Register notices establish a 4% interest rate for qualifying businesses and small agricultural cooperatives that cannot obtain credit elsewhere.
The rate for eligible private nonprofit organizations is 3.625%.
Individual loan amounts depend on the applicant’s documented economic injury, financial needs, and the SBA’s review.
The SBA generally provides Economic Injury Disaster Loans with repayment terms of up to 30 years, depending on the borrower’s ability to repay.
Loan approval is not guaranteed.
Applications Due July 23, 2027
Both wildfire declarations establish July 23, 2027, as the economic injury application deadline.
Applications can be submitted through the SBA’s online lending portal.
Businesses can also contact the SBA Disaster Assistance Customer Service Center at 800-659-2955.
Applicants should be prepared to document their operating expenses, financial condition, and the relationship between their economic losses and the applicable wildfire.
The newly published declarations provide a potential financing option for qualifying businesses in the designated Colorado counties.
Business owners should verify their eligibility under the specific Elk Fire or Willow Fire declaration before applying.
