Governor Announces Availability of SBA Disaster Loans for Small Businesses and Nonprofit Organizations in Municipalities Included in Federal Drought Disaster Declaration
La Fortaleza, Puerto Rico – August 27, 2026 — Governor of Puerto Rico Jenniffer González Colón and Puerto Rico Federal Affairs Administration (PRFAA) Executive Director Gabriella Boffelli today announced the availability of financial assistance through the U.S. Small Business Administration’s (SBA) Economic Injury Disaster Loans (EIDL), following the recent federal drought disaster declaration issued by the U.S. Department of Agriculture (USDA) at the Governor’s request, which includes 26 municipalities across Puerto Rico.
EIDL assistance is available to small businesses, small agricultural cooperatives, aquaculture businesses, nurseries, and most private nonprofit organizations that have experienced economic losses as a result of the drought. Loan proceeds may be used as working capital to cover ordinary and necessary operating expenses and financial obligations that could not be met because of the disaster.
“This emergency affects more than our farmers; it also has a direct impact on the small businesses and organizations that keep our communities’ economies moving. That is why we continue working with federal agencies to ensure that available resources reach those who need them most. The availability of these SBA loans provides an additional tool for eligible businesses to address the economic impact of the drought and maintain their operations. I appreciate the coordination and prompt response from Administrator Kelly Loeffler and her team at the SBA Office of Disaster Recovery and Resilience and the SBA District Office for Puerto Rico and the U.S. Virgin Islands,” said Governor González Colón.
PRFAA Executive Director Gabriella Boffelli emphasized that “we are working closely with Governor González Colón and in coordination with federal agencies to ensure that available resources reach the sectors affected by this drought. This SBA assistance provides an additional tool for small businesses and nonprofit organizations that need support to maintain their operations. Our commitment is to continue these efforts and help facilitate access to these resources.”
Eligible Municipalities
Primary Municipalities: Cabo Rojo, Coamo, Guánica, Guayanilla, Juana Díaz, Lajas, Peñuelas, Ponce, Sabana Grande, Salinas, San Germán, Santa Isabel, and Yauco.
Contiguous Municipalities: Adjuntas, Aibonito, Barranquitas, Cayey, Guayama, Hormigueros, Jayuya, Lares, Maricao, Mayagüez, Orocovis, Utuado, and Villalba.
SBA EIDL Program Details
· Loan limit: Up to $2 million to address economic losses. The SBA may consider waiving the statutory loan limit when the business is a major source of employment.
· Interest rate: A fixed rate established by law, with a maximum of 4.00%.
· Repayment terms: Terms of up to 30 years.
· Use of funds: Working capital for ordinary and necessary operating expenses and financial obligations. Loan proceeds may not be used to refinance long-term debt.
· Eligibility: Small businesses, nurseries, small agricultural cooperatives, aquaculture businesses, and most private nonprofit organizations.
· Traditional agricultural businesses: Farmers and ranchers must apply for the appropriate assistance through USDA and the Farm Service Agency (FSA) and are therefore not eligible for SBA EIDL loans.
How to Apply
Eligible businesses and organizations may complete and submit their disaster assistance application online through the MySBA Loan Portal.
They may also contact the SBA Customer Service Center at 1-800-659-2955 (7-1-1 for individuals who are deaf, hard of hearing, or have a speech disability) or by email at disastercustomerservice@sba.gov.
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