The federal Small Business Administration has declared an economic disaster for parts of Interior Alaska that lost business due to wildfires this summer. Gov. Dunleavy requested the disaster declaration on Aug. 19.
The declaration covers small businesses and private nonprofits affected by the Bear Creek and Nenana Ridge fire complexes, which burned over a hundred thousand acres and dozens of structures. The fires also intermittently closed major highways leading in and out of Fairbanks.
Jeremy Zidek, a spokesperson for the state emergency operations center, said the state didn’t just ask for economic relief to cover physical damage. It’s also meant to help businesses get back on their feet after the fires turned customers away.
“Our tourism season is limited,” Zidek said. “There's a certain time that the businesses that are engaged in tourism have to get out there and make the money that they're going to make for the year.”
Affected small businesses and private nonprofits now qualify for what’s called an Economic Injury Disaster Loan, which means they’ll be able to borrow federal money at low interest to help recoup their losses. That assistance isn’t extended to the agricultural or ranching industries, except for small co-ops and aquaculture businesses.
Qualifying businesses can borrow up to $2 million, with interest rates lower than 4%. Interest will not accrue and payments will not be due until a year from a loan’s disbursal date.
Susheel Kumar, a spokesperson for the Small Business Administration’s Office of Disaster Recovery and Resilience, said the application process is fairly straightforward.
“It is asking about you, your business, your industry sector tax returns, what the approximate amount of your injury might be,” he said. “Then, what it is that you're seeking to borrow.”
The deadline to file an application is May 20, 2026. For more information, visit the Small Business Administration’s website.