The latest drought statistics in Massachusetts, as of Sept. 6, 2016. Source: U.S. Drought Monitor

Gov. Charlie Baker and Lt. Gov. Karyn Polito this week announced an emergency loan fund to help Massachusetts farms struggling with prolonged drought this summer.

The Massachusetts Drought Emergency Loan Fund will provide microloans of $5,000 to $10,000 to farms and other agriculture-related small businesses impacted by what the U.S. Drought Monitor (USDM) has characterized as “severe” or “extreme” drought affecting most of the state. The Massachusetts Growth Capital Corp. will administer the loan fund, which will make up to $1 million in loans available.

“This new loan fund will provide affordable working capital loans to small businesses, including family farms grappling with a downturn in business caused by this prolonged drought,” Housing and Economic Development Secretary Jay Ash said in a statement. “Additionally, we are activating all of our business development channels, to remind consumers that Massachusetts farmers markets and farm stands still have top-quality produce for sale, and they have our full support.”

The USDM said that as of Thursday, 94 percent of Massachusetts is currently in moderate or severe drought. About 77 percent of the state is in severe drought and almost 23 percent of the state is considered to be under extreme drought. The USDM estimated that about 6.5 million people live in parts of the state affected by drought.

The state expects the loan fund to run through November 2016.