The U.S. Small Business Administration on Friday approved disaster assistance loans for eight southeast Colorado counties affected by ongoing drought conditions starting on July 7.

Small businesses and private nonprofits in El Paso, Teller, Fremont, Douglas, Elbert, Pueblo, Crowley and Lincoln counties can apply, according to the SBA.

The loans, with interest rates as low as 4% for small businesses and 3.625% for nonprofits, can provide up to $2 million for operational expenses caused by drought. Interest and payments are not due in the first 12 months.

SBA drought loans have already been made available in six other southeast Colorado counties and parts of Kansas this year. Nearly all of Colorado was covered for SBA drought loans last year.

All of southeast Colorado remains under moderate to exceptional drought, according to the U.S. Drought Monitor.