The U.S. Small Business Administration (SBA) is reminding small businesses and private nonprofit organizations in Montana of the approaching deadline to apply for federal disaster loans due to drought-related economic losses. The deadline for applications is July 25, 2025.
This opportunity follows a disaster declaration covering several Montana counties, including Custer, Dawson, Fallon, Garfield, McCone, Prairie, Richland, Roosevelt, Valley, and Wibaux. The SBA's Economic Injury Disaster Loan (EIDL) program is available to eligible small businesses and nonprofits impacted by financial losses directly related to the drought. However, the SBA does not extend these loans to agricultural producers such as farmers or ranchers unless they are small aquaculture enterprises.
EIDLs can be used for working capital needs caused by the drought and are available even if no physical damage was sustained. The loans can cover fixed debts, payroll, accounts payable, and other bills that could not be paid due to the disaster.
"SBA loans help eligible small businesses and private nonprofits cover operating expenses after a disaster, which is crucial for their recovery," said Chris Stallings, associate administrator of the Office of Disaster Recovery and Resilience at the SBA. "These loans not only help business owners get back on their feet but also play a key role in sustaining local economies in the aftermath of a disaster."
Loan amounts can reach up to $2 million with interest rates as low as 4% for small businesses and 3.62% for nonprofits. Terms may extend up to 30 years. Interest does not accrue nor are payments required until 12 months after the first loan disbursement. Loan amounts and terms depend on each applicant’s financial condition.
Applications can be submitted online at sba.gov/disaster or through SBA's Customer Service Center at (800) 659-2955 or via email at disastercustomerservice@sba.gov. Telecommunications relay services are available by dialing 7-1-1 for those who are deaf or hard of hearing.
Completed loan applications must be submitted by July 25.
The U.S. Small Business Administration aims to support American entrepreneurs through resources needed to start or recover from disasters via its network of field offices and partnerships with public and private organizations.