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 affected by drought starting May 1. The declaration includes several counties across Montana, Idaho, North Dakota, South Dakota, and Wyoming.
Under this declaration, the SBA's Economic Injury Disaster Loan (EIDL) program is available to small businesses, small agricultural cooperatives, nurseries, and private nonprofits with financial losses directly related to the drought. However, the SBA cannot provide disaster loans to agricultural producers, farmers, or ranchers except for small aquaculture enterprises.
EIDLs are designed to meet working capital needs caused by the disaster and can be used even if there was no physical damage to the business or nonprofit. These loans may cover fixed debts, payroll, accounts payable, and other bills that could not be paid due to the disaster.
“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 as low as 4% for small businesses and 3.625% for private nonprofits. Terms can extend up to 30 years. Interest does not accrue nor are payments due until 12 months after the first loan disbursement date. The SBA determines loan amounts and terms based 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. For those who are deaf or hard of hearing or have a speech disability, telecommunications relay services can be accessed by dialing 7-1-1.
Completed loan applications must be submitted by March 9, 2026.
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