Aspen Acres Fire Hit Southern Colorado Businesses — SBA Loans Up to $2 Million Now Open

The Aspen Acres Fire started June 29, 2026, when an aspen tree fell onto power lines. It has since burned more than 100,000 acres in southern Colorado. Now the U.S. Small Business Administration (SBA) has approved disaster loans for the businesses, nonprofits, and households it hurt, Gov. Jared Polis announced.

If your business lost equipment, inventory, or income to the fire, you can borrow up to $2 million at rates as low as 4%. Physical damage applications close December 14, so the window is short.

Where the help applies

Colorado's approved request names Pueblo and Custer counties. SBA's notice, as reported by KKTV, also lists neighboring counties that can apply: Crowley, El Paso, Fremont, Huerfano, Lincoln, Otero, and Saguache. If your business is in or near the burn area, check eligibility with the SBA rather than assuming you are outside it.

The fire's disaster number is CO-20032, which appears in the SBA application link.

What you can borrow

• Businesses and private nonprofits: up to $2 million to replace machinery, equipment, inventory, destroyed real estate, and other business assets.
• Homeowners: up to $500,000 to repair or replace an uninsured primary residence.
• Homeowners and renters: up to $100,000 to replace damaged personal belongings.

The SBA says interest rates can be as low as 4% for businesses, 3.625% for private nonprofits, and 2.875% for homeowners and renters. Terms run up to 30 years, and interest does not begin accruing until 12 months after the first disbursement. Your actual rate depends on your finances.

The two deadlines

• Physical damage loans: December 14.
• Economic injury disaster loans (EIDLs): July 14, 2027.

An EIDL provides working capital if the disaster cut your revenue, even when your building and equipment survived. Many owners lose weeks of sales to evacuations, road closures, smoke, and power outages without any physical damage. If that is your situation, the later EIDL deadline is the one that matters, but starting early gets money to you faster.

Where to get in-person help

SBA is staffing Disaster Loan Outreach Centers, which opened Monday, October 19:

• Custer County: Wetmore Community Library in Wetmore. Open Monday through Friday, 9 a.m. to 6 p.m.
• Pueblo County: Pueblo County Government Services Center in Pueblo. Open Monday through Friday, 8 a.m. to 5:30 p.m.

You can request an appointment at appointment.sba.gov, apply online at sba.gov/disaster, or call SBA customer service at 1-800-659-2955.

What to gather before applying

• Business tax returns and your EIN.
• A recent profit and loss statement showing what the fire did to revenue.
• Photos, receipts, and inventory lists for what was damaged or lost.
• Insurance policies and claim numbers. SBA disaster loans are aimed at uninsured losses, so file your claim first. Our guide to business insurance explains common coverage gaps.

What other federal help did not come through

Colorado Politics reports that FEMA denied individual and hazard-mitigation assistance for the Aspen Acres and Gold Mountain fires, while approving a major disaster declaration for the Elk and Lee fires in Rio Blanco County. That makes the SBA loans the main federal option for many Aspen Acres victims. The state will also cover 75% of the nonfederal cost share for flood-risk projects after the fires through USDA's Emergency Watershed Protection program, which may matter if burn scars raise your flood risk later.

Smart borrowing after a disaster

These loans are cheap by commercial standards, but they are still debt. Borrow what you need to reopen and bridge the gap. Keep disaster funds in a separate business account and track how you spend them, because the SBA expects loan proceeds to be used for the stated purposes. If you want a primer on how SBA lending works, read our SBA loan guide.

Polis said Colorado "moved quickly to secure this assistance, and now families and businesses can apply for low-interest loans." The speed matters because your deadline runs from the declaration, not from when you finish cleaning up.

Checklist for this week

1. Photograph and list all damage before repairs.
2. File or update your insurance claim.
3. Start your SBA application online or book an appointment.
4. Ask the SBA whether your county qualifies if it is not Pueblo or Custer.
5. Put December 14 and July 14, 2027 on your calendar.

Reporting for this article draws on KKTV and Colorado Politics coverage of the SBA announcement. Verify current terms at sba.gov/disaster before applying.

Photo by Matt Palmer on Unsplash