Hawaiʻi small businesses and private nonprofits still reeling from the ongoing drought have until December 10 to apply for federal disaster loans worth up to $2 million, with interest rates as low as 4 percent and no payments due for the first year. The reminder went out Thursday as officials urged affected organizations not to wait until the last minute to file their paperwork.
The notice, shared by Hawaii EMA
on X, says the U.S. Small Business Administration is offering Economic Injury Disaster Loans to help cover eligible operating expenses for organizations struggling with the drought's effects. The loans are described as working capital for operational expenses, meaning businesses don't need to show physical property damage to qualify. Eligible applicants include small businesses, faith-based organizations, agricultural cooperatives, nurseries and aquaculture enterprises, according to the post.
Who Qualifies and What the Loans Offer
Small businesses may qualify for interest rates as low as 4 percent, while private nonprofits could see rates as low as 3.625 percent, per the Hawaii EMA notice. Loan terms stretch up to 30 years, and borrowers get a break on payments for the first 12 months from the date of the first loan disbursement. The assistance is available across Hawaiʻi, Honolulu, Kalawao, Kauaʻi and Maui counties, according to a notice from the U.S. Small Business Administration.
Organizations are encouraged to apply as soon as possible, with the application window closing December 10. Those interested can apply online at sba.gov/disaster or call (866) SBA-HELP for assistance, per the Hawaii EMA post. Hawaii EMA, which is based in Honolulu, noted that its social media accounts are not monitored around the clock and advised anyone facing an actual emergency to call 9-1-1 rather than wait for a reply online.
Not the First Round of Drought Relief
This isn't the first time the SBA has opened its disaster loan program to Hawaiʻi businesses grappling with dry conditions. A March 2025 notice from the U.S. Small Business Administration described nearly identical terms — loans up to $2 million, 4 percent rates for small businesses, 3.625 percent for private nonprofits, and repayment windows up to 30 years — tied to an earlier drought event. An even earlier notice, issued in January 2025, emphasized that the loans cover working capital needs tied to the disaster and remain available even when a business hasn't suffered any physical damage.
An April 2026 notice from the agency likewise described disaster relief for Hawaiʻi small businesses and private nonprofits, citing the same 4 percent business rate and 3.625 percent nonprofit rate, with terms up to 30 years. The recurring pattern of notices suggests drought-related financial strain has been an ongoing concern for Hawaiʻi's business community, though the current drought's severity, duration and broader economic toll were not detailed in this latest notice.
Where to Find More Information
For residents and business owners looking for broader emergency preparedness information, Hawaii EMA points to ready.hawaii.gov as a resource hub. The agency's reminder comes as the December 10 deadline approaches, giving affected businesses and nonprofits a limited window to pull together applications for the low-interest funding.
