Small businesses and private nonprofits across Suffolk County battered by more than a year of drought conditions can now apply for federal disaster loans of up to $2 million, with interest rates as low as 4 percent and no payments due for the first 12 months. The U.S. Small Business Administration announced that Economic Injury Disaster Loans became available starting June 9, 2026, to cover lost revenue and operating expenses tied to dry conditions that began last summer.
The assistance, first reported locally by The South Shore Press, isn't limited to Suffolk County. The same disaster declaration also covers New London County in Connecticut and Kent, Newport and Washington counties in Rhode Island, reflecting how widely the dry spell stretched across the region. Eligible applicants include small businesses, private nonprofits and faith-based organizations, along with small aquaculture enterprises, agricultural cooperatives and nurseries.
That last category matters because most traditional farmers can't access these loans at all. Under federal rules governing the SBA Disaster Loan Program, primary agricultural producers such as crop farmers and livestock ranchers are barred from Economic Injury Disaster Loans because they fall under USDA authority, according to federal regulations published in the eCFR. Aquaculture operators, co-ops and nurseries, however, are explicitly carved out as exceptions, which is why Suffolk's shellfish growers are squarely in the mix this time around.
Why Suffolk's Farms and Oyster Beds Are So Exposed
The stakes are high for Long Island's food producers. Suffolk County leads statewide in certain direct-to-consumer and local-retailer agricultural sales, according to the New York State Comptroller. Long Island farms generated nearly $373 million in agricultural sales in 2022. That economic weight is part of why a prolonged, localized dry spell here draws federal attention.
The dryness wasn't a one-season blip. In March 2026, the New York State Department of Environmental Conservation kept Nassau and Suffolk counties under a Drought Watch while upstate drought Regions II through VIII had returned to normal, the agency reported. By the end of August, Suffolk County had recorded a 2.07-inch precipitation deficit below its 30-year normal average for the January through August stretch, according to the National Integrated Drought Information System.
Water Pressure and Fire Protection Also Strained
Water use also drew attention beyond farms and fish beds. In July, the Suffolk County Water Authority issued a Stage 1 Water Alert for East End towns after recording a monthly system pumpage record of 11.15 billion gallons in June, the authority said.
This isn't the first blow local shellfish growers have absorbed this year. In May, the USDA issued a Secretarial Natural Disaster Designation for Suffolk County tied to severe winter freeze and ice floe conditions in February that caused an estimated $2.4 million in losses for Long Island shellfish growers, according to the Office of Governor Kathy Hochul. That same month, Governor Hochul announced $3 million in state awards to 14 small businesses under Round 2 of the Long Island Aquaculture Infrastructure Grant Program, aimed at helping shellfish growers with operational upgrades and climate resilience, per the state Department of Agriculture and Markets.
Loan Terms and How to Apply
The Economic Injury Disaster Loans differ from disaster loans meant to repair physical damage — no direct property damage is required to qualify for the drought-related assistance, since the program is designed to support businesses whose revenues or operations suffered from the prolonged dry conditions. Loans carry interest rates as low as 4 percent for small businesses and 3.625 percent for private nonprofit organizations, with repayment terms stretching up to 30 years and a maximum loan amount of $2 million.
Under Federal Register guidelines, payments are not due and interest does not accrue during the first 12 months after disbursement, according to the Federal Register. Suffolk County businesses and organizations have until April 26, 2027 to submit applications, which can be filed through the SBA's disaster assistance portal. Applicants can also reach the SBA's customer service center at (800) 659-2955 or by emailing [email protected], and those who are deaf, hard of hearing or have a speech disability can use 7-1-1 telecommunications relay services.
