The U.S. Small Business Administration (SBA) has issued a reminder to small businesses and private nonprofit organizations in Montana about the approaching May 23 deadline for applying for federal disaster loans. These loans aim to mitigate economic losses stemming from the drought that began on September 17, 2024.
The disaster declaration affects the Montana counties of Big Horn, Carter, Custer, Powder River, and Rosebud, as well as the Wyoming counties of Campbell, Crook, and Sheridan. The SBA’s Economic Injury Disaster Loan (EIDL) program is targeted towards small businesses, small agricultural cooperatives, nurseries, and private nonprofit organizations that have experienced financial setbacks due to the drought. However, agricultural producers, farmers, and ranchers remain ineligible for these loans unless they operate a small aquaculture enterprise.
EIDLs are designed to address working capital needs caused by the disaster, regardless of whether the business or nonprofit suffered physical damage. Loan funds can be used to cover fixed debts, payroll, accounts payable, and other financial obligations unmet due to the drought's impact.
“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.”
Loan amounts can reach up to $2 million with interest rates set at 4% for small businesses and 3.25% for private nonprofits. Terms can extend up to 30 years, with interest and payments deferred for 12 months from the initial loan disbursement. Loan amounts and terms are determined by the SBA based on the applicant’s financial situation.
For applications, visit sba.gov/disaster or contact SBA’s Customer Service Center at (800) 659-2955. Applications can also be sent via email to disastercustomerservice@sba.gov. For individuals with hearing or speech disabilities, telecommunications relay services can be accessed by dialing 7-1-1.
Loan applications must be submitted to the SBA by May 23.