The U.S. Small Business Administration (SBA) has issued a reminder to small businesses and private nonprofit organizations in Michigan about the approaching deadline of March 10, 2025, to apply for federal disaster loans. These loans aim to alleviate economic losses resulting from the drought and excessive heat that began on January 1, 2024.
The affected areas include Cheboygan, Chippewa, Emmet, Luce, Mackinac, and Schoolcraft counties. The SBA's Economic Injury Disaster Loan (EIDL) program is accessible to small businesses, small agricultural cooperatives, nurseries, and PNPs impacted financially by this natural disaster. However, agricultural producers, farmers, or ranchers are not eligible for these loans unless they are small aquaculture enterprises.
EIDLs are designed to address working capital needs arising from the disaster and can be utilized even if there was no physical damage to the business or organization. These loans may cover expenses such as fixed debts, payroll, accounts payable, and other bills that could have been settled if the disaster had not occurred.
Eligible applicants can receive up to $2 million with interest rates as low as 4% for small businesses and 3.25% for PNPs. Loan terms can extend up to 30 years. Importantly, interest does not accrue nor are payments required until 12 months after the first loan disbursement. The SBA determines loan amounts based on each applicant’s financial situation.
Interested parties can apply online at SBA.gov/disaster or contact SBA’s Customer Service Center at (800) 659-2955 for further assistance. Individuals who are deaf or hard of hearing can access telecommunications relay services by dialing 7-1-1.
All completed loan applications must be submitted by March 10, 2025.
The U.S. Small Business Administration serves as a crucial resource for entrepreneurs and small business owners across America by providing necessary resources and support through its extensive network of field offices and partnerships with public and private entities.