Federal disaster loans available for northern Wisconsin businesses impacted by drought

Small businesses and private nonprofit organizations in northern Wisconsin may qualify for federal disaster loans to help cover financial losses caused by ongoing drought conditions.

The U.S. Small Business Administration (SBA) is offering low-interest Economic Injury Disaster Loans to eligible businesses and organizations affected by drought conditions that began August 25, 2026.

In northern Wisconsin, eligible counties include Barron, Bayfield, Burnett, Douglas, Rusk, Sawyer and Washburn. The assistance is also available in Buffalo, Dunn, Eau Claire, Pepin, Pierce, Polk and St. Croix counties.

The loans are meant to help businesses pay operating expenses and other financial obligations they may be struggling to cover because of the drought. Businesses do not need to have suffered physical property damage to qualify.

Eligible applicants include small businesses, private nonprofit organizations, small agricultural cooperatives, nurseries and small aquaculture businesses.

Loans of up to $2 million are available, with interest rates of up to 4% for small businesses and 3.625% for private nonprofit organizations.

Repayment terms can extend up to 30 years, depending on the applicant's ability to repay. No interest will accrue, and no payments are required during the first 12 months after the loan funds are distributed.

Applicants must show that their financial difficulties are a direct result of the drought. The SBA also considers credit history and the ability to repay when reviewing applications.

The deadline to apply is May 17, 2027.

Applications and additional information are available through the SBA's disaster assistance website.