The U.S. Small Business Administration (SBA) has announced the availability of low-interest federal disaster loans for small businesses and private nonprofit organizations in Montana. These loans aim to offset economic losses resulting from drought conditions that began on June 10.
The disaster declaration includes several counties: Cascade, Chouteau, Flathead, Glacier, Lake, Lewis and Clark, Liberty, Lincoln, Missoula, Pondera, Powell, Sanders, Teton, and Toole.
Through the SBA's Economic Injury Disaster Loan (EIDL) program, eligible entities such as small businesses, small agricultural cooperatives, nurseries, and private nonprofits can apply for financial assistance if they have suffered economic losses directly related to the drought. The SBA does not provide these loans to agricultural producers or farmers except for small aquaculture enterprises.
EIDLs are intended to cover working capital needs caused by the disaster. They can be used to pay fixed debts, payroll expenses, accounts payable and other bills that cannot be paid due to the disaster. Importantly, these loans are available even if there is no physical damage to the business or nonprofit.
Chris Stallings from the Office of Disaster Recovery and Resilience at the SBA stated: “Through a declaration by the U.S. Secretary of Agriculture, SBA provides critical financial assistance to help communities recover. 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 3.62% for private nonprofits. Terms can extend up to 30 years with no interest accruing or payments required until 12 months after the first loan disbursement. The specific loan amount and terms will depend on each applicant’s financial condition.
Interested parties can apply online at sba.gov/disaster or contact SBA’s Customer Service Center via phone or email for more information on disaster assistance options. Applications must be submitted by February 17, 2026.