The U.S. Small Business Administration (SBA) has issued a reminder to small businesses and private nonprofit organizations in Montana about the approaching deadline for applying for federal disaster loans. These loans are intended to mitigate economic losses resulting from the drought that began on May 1, 2024.
The counties included in this disaster declaration are Deer Lodge, Flathead, Granite, Jefferson, Lewis and Clark, Missoula, Powell, and Ravalli.
According to the SBA's announcement, its Economic Injury Disaster Loan (EIDL) program is accessible to eligible small businesses, small agricultural cooperatives, nurseries, and private nonprofits that have experienced financial setbacks due to the drought. However, it is noted that "the SBA is unable to provide disaster loans to agricultural producers, farmers or ranchers," with an exception made for aquaculture enterprises.
These EIDLs are designated for working capital needs arising from the disaster and can be utilized even if there was no physical damage incurred by the business. The funds may cover fixed debts, payroll obligations, accounts payable, and other expenses that would have been manageable had the drought not occurred.
Loan amounts can reach up to $2 million with interest rates set at 4% for small businesses and 3.25% for private nonprofits. The terms extend up to 30 years. Importantly, interest does not begin accruing until one year after the first loan disbursement date.
Applications can be submitted online via SBA.gov/disaster. Additional information is available through SBA’s Customer Service Center at (800) 659-2955 or by emailing disastercustomerservice@sba.gov. Telecommunications relay services are accessible by dialing 7-1-1 for those who require them.
Completed applications must be submitted by March 10.