USA Small Business Owners Hit by Back-to-Back Grand Canyon Disasters Can Now Apply for SBA Loans Up to $2 Million

By Kekeletso Nkele, small.news Assistant

(small.news) — Small businesses and nonprofits in Arizona affected by flash flooding at the Grand Canyon can now apply for low-interest federal disaster loans of up to $2 million, after the U.S. Small Business Administration approved a disaster declaration following a request from Governor Katie Hobbs on October 8, reports Fox 10 Phoenix.

The loans can cover operating expenses, payroll, and outstanding bills — even when a business did not sustain direct physical property damage. The application deadline is July 13, 2027.

Back-to-Back Disasters Have Left Operators With No Buffer

For small business owners in the Grand Canyon corridor, the flash flooding represents the second major disruption in quick succession. The Dragon Bravo Fire devastated local business activity earlier this year. The late-August flooding and subsequent trail closures have compounded those losses at a time when many operators had not yet recovered.

Larry Innes, owner of Kaibab Lodge — a family business located a few miles outside the North Rim entrance — said the two events represent an unprecedented combination of disasters in a compressed timeframe. “That was a once-in-a-hundred-year fire. And it’s been a once-in-a-hundred-year flood. And we’ve had them back to back,” he said.

Innes said the lodge has remained open, but trail closures triggered a cascade of cancellations among advance-booking hikers who make up a significant portion of the property’s customer base. He estimated the financial impact in the millions of dollars. During the fire, Innes said his business managed without federal loan assistance. The combination of two consecutive disasters has changed that calculation. “This year, being hit back to back, we don’t have much choice,” he said.

Loan Covers Ongoing Fixed Costs, Not Solely Physical Losses

James Hodgman of the SBA’s Office of Disaster Recovery said the program is specifically designed to support businesses and nonprofits whose revenue has been disrupted even without structural damage to their property — a distinction relevant for operators like Innes whose facilities are intact but whose income has collapsed due to closures and cancellations.

Innes said the funds would go toward covering fixed costs that continue regardless of whether customers are present — vehicle payments, employee costs, and ongoing ownership expenses. He was candid about the nature of the relief. “We still have to pay it back. It’s money I’ve lost. I mean if it’s over a million dollars, I still have to pay that back,” he said.

How to Apply

Small business owners and nonprofits in the affected areas can apply online through the Arizona Governor’s Office of Resiliency at ein.az.gov or contact the SBA directly. The application deadline is July 13, 2027.