The U.S. Small Business Administration (SBA) is reminding small businesses and private nonprofit (PNP) organizations in Montana that the deadline to apply for federal disaster loans is approaching. These loans aim to mitigate economic losses due to the drought that began on August 27, 2024. Interested entities have until May 5, 2025, to submit their applications.
The disaster declaration encompasses several Montana counties, including Carter, Custer, Daniels, Fallon, McCone, Powder River, Richland, Roosevelt, Sheridan, and Valley. In addition, the declaration extends to Divide, McKenzie, and Williams counties in North Dakota; Butte and Harding counties in South Dakota; and Crook County in Wyoming.
The SBA's Economic Injury Disaster Loan (EIDL) program is providing financial assistance under this declaration. The program aids small businesses, small agricultural cooperatives, nurseries, and PNPs that suffered financial losses due to the drought. However, it does not cover agricultural producers, farmers, or ranchers, with the exception of small aquaculture enterprises.
These loans are intended to cover working capital needs resulting from the disaster, regardless of whether physical damage occurred. The funds can be used to pay fixed debts, payroll, accounts payable, and other bills disrupted by the drought.
“Through a declaration by the U.S. Secretary of Agriculture, SBA provides critical financial assistance to help communities recover,” said Chris Stallings, associate administrator of the Office of Disaster Recovery and Resilience at the SBA. “We’re pleased to offer loans to small businesses and private nonprofits impacted by these disasters.”
The loan amounts can reach up to $2 million with interest rates for small businesses starting at 4% and 3.25% for PNPs. Loan terms can extend up to 30 years. Importantly, interest does not start accruing and payments are not due until 12 months after the first loan disbursement. The SBA will determine specific loan amounts and terms based on the financial conditions of the applicants.
Applications can be submitted online at sba.gov/disaster. Those seeking further information can contact the SBA Customer Service Center at (800) 659-2955 or via email at disastercustomerservice@sba.gov. For individuals who are deaf, hard of hearing, or have a speech disability, telecommunications relay services can be accessed by dialing 7-1-1.
All applications must be submitted by May 5.