ATLANTA — North Alabama and Tennessee small businesses and private nonprofit organizations that sustained economic losses by the drought may be eligible for disaster loans, the U.S. Small Business Administration announced.

The low interest federal disaster loans are available to the businesses and organizations that sustained economic losses caused by the drought that began last December.

“Through a declaration by the U.S. Secretary of Agriculture, SBA provides critical financial assistance to help communities recover,” said Chris Stallings, associate administrator of the Office of Disaster Recovery and Resilience at the SBA. “We’re pleased to offer loans to small businesses and private nonprofits impacted by these disasters.”

The disaster declaration covers Colbert, Cullman, Franklin, Jackson, Lauderdale, Lawrence, Limestone, Madison, Marion, Marshall, Morgan, and Winston counties in North Alabama; and Franklin, Giles, Hardin, Lawrence, Lincoln and Wayne counties in Tennessee.

Under the declaration, the SBA’s Economic Injury Disaster Loan program is available to eligible small businesses, small agricultural cooperatives, nurseries, and nonprofits with financial losses directly related to the disaster.

However, the SBA is unable to provide disaster loans to agricultural producers, farmers, or ranchers, except for aquaculture enterprises.

The disaster loans are available for working capital needs caused by the disaster and are available even if the small business or nonprofit did not suffer any physical damage. The loans may be used to pay fixed debts, payroll, accounts payable, and other bills not paid due to the disaster.