The U.S. Small Business Administration (SBA) has announced that small businesses and private nonprofit organizations in Idaho affected by droughts beginning in July 2025 are eligible for low-interest federal disaster loans. These loans are intended to help offset economic losses due to the ongoing drought conditions.
The SBA’s Economic Injury Disaster Loan (EIDL) program is available under two separate disaster declarations. The first covers Clearwater, Idaho, Lemhi, Lewis, and Shoshone counties as primary counties, with several neighboring counties in Idaho, Montana, and Oregon also included. The second declaration includes Benewah, Latah, and Nez Perce as primary counties along with neighboring counties in Idaho, Oregon, and Washington.
The EIDL program provides financial assistance for working capital needs caused by the disaster. Eligible entities include small businesses, small agricultural cooperatives, nurseries, and private nonprofits such as faith-based organizations that have experienced financial losses related to the drought. However, agricultural producers, farmers, or ranchers are generally not eligible unless they operate small aquaculture enterprises.
Businesses can use these loans for expenses such as fixed debts, payroll, accounts payable, and other bills that could not be paid due to the impact of the drought. Physical damage is not a requirement for eligibility.
“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 businesses and 3.625% for private nonprofits. Repayment terms can extend up to 30 years depending on each applicant’s financial situation. There is a 12-month deferment before interest accrues or payments are required after loan disbursement.
Applications must be submitted by March 16, 2026. More information about applying online or through other means is available at https://www.sba.gov/disaster.
The SBA continues its mission to support entrepreneurs and small business owners across the country through various resources delivered via field offices and partnerships with public and private groups. Additional details about SBA services can be found at https://www.sba.gov.