The U.S. Small Business Administration has issued an economic disaster designation for regions in Interior Alaska affected by wildfires during the summer months. Governor Mike Dunleavy formally requested the declaration on August 19, prompting federal support for local enterprises disrupted by the Bear Creek and Nenana Ridge fire complexes. These blazes consumed more than 100,000 acres and destroyed numerous buildings, while also causing periodic shutdowns of key transportation routes into and out of Fairbanks.\n\nJeremy Zidek, a representative from the state emergency operations center, emphasized that the relief effort extends beyond compensation for physical destruction. It also aims to assist commercial entities that suffered revenue loss as visitors avoided the area during peak tourism periods.\n\n”Our tourism window is narrow,” Zidek explained. “Businesses relying on seasonal travel have a limited timeframe to generate their annual income, and disruptions during this period can be financially devastating.”\n\nThe disaster status makes small businesses and private nonprofit organizations eligible for Economic Injury Disaster Loans. These federally backed loans offer favorable terms, including interest rates below 4%, with repayment deferred for one year from the date funds are disbursed. Accrued interest during this grace period is waived.\n\nEligible applicants may borrow up to \$2 million. However, agricultural and ranching operations are generally excluded from this assistance, except for small cooperatives and aquaculture ventures.\n\nSusheel Kumar, a spokesperson for the SBA’s Office of Disaster Recovery and Resilience, described the application as user-friendly, requiring basic business information, tax documentation, an estimate of financial impact, and clarification on how loan proceeds would be used.\n\nThe deadline to submit applications is May 20, 2026. Additional details are available through the SBA’s official website.\n— news from Alaska Public Media\n\n— News Original —\nSmall Business Administration declares economic disaster for Interior Alaska wildfires\nThe 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. \nThe 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. \nJeremy 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. \n”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.” \nAffected 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. \nQualifying 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. \nSusheel Kumar, a spokesperson for the Small Business Administration ‘s Office of Disaster Recovery and Resilience, said the application process is fairly straightforward. \n”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.” \nThe deadline to file an application is May 20, 2026. For more information, visit the Small Business Administration ‘s website. \nCopyright 2025 KUAC