The U.S. Small Business Administration is urging eligible small businesses and private nonprofit organizations in Montana to apply for federal disaster loans by May 9. These loans are designed to address economic losses caused by the drought that began on July 16, 2024.
The SBA's Economic Injury Disaster Loan program is targeting small businesses, small agricultural cooperatives, nurseries, and private nonprofits with financial losses related to the disaster. However, it does not extend to agricultural producers, farmers, or ranchers, with the exception of small aquaculture enterprises.
Loans are available to meet working capital needs resulting from the drought and are accessible even if the applicant did not experience physical damage. The funds can be used for various financial obligations that went unmet due to the drought.
"Through a declaration by the U.S. Secretary of Agriculture, SBA provides critical financial assistance to help communities recover," stated 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 disaster declaration affects the counties of Broadwater, Flathead, Gallatin, Jefferson, Lewis and Clark, Lincoln, Meagher, and Sanders in Montana, as well as Bonner and Boundary counties in Idaho. Loans can reach up to $2 million, with interest rates as low as 4% for small businesses and 3.25% for private nonprofits, and terms of up to 30 years. Interest does not start accruing, and payments are not required, until 12 months after the first loan disbursement. Loan amounts and terms are determined by each applicant's financial condition.
Interested parties can apply online at sba.gov/disaster or contact SBA’s Customer Service Center for more information. Completed loan applications should be submitted by the May 9 deadline.