The U.S. Small Business Administration (SBA) has issued a reminder to small businesses and private nonprofit organizations in Michigan regarding the approaching deadline of March 31 for applying for federal disaster loans. These loans aim to mitigate economic losses caused by the drought that began on April 25, 2024.
The disaster declaration encompasses several counties, including Allegan, Barry, Bay, Calhoun, Clare, Clinton, Eaton, Gladwin, Gratiot, Ionia, Isabella, Kalamazoo, Kent, Midland, Montcalm, and Saginaw.
Through this declaration, the SBA’s Economic Injury Disaster Loan (EIDL) program is accessible to small businesses, small agricultural cooperatives, nurseries, and private nonprofits that experienced financial setbacks due to the drought. However, agricultural producers such as farmers and ranchers are not eligible for these loans unless they operate small aquaculture enterprises.
EIDLs provide working capital to cover expenses like fixed debts and payroll that could have been managed if not for the disaster. Chris Stallings from the SBA emphasized the importance of these loans: "SBA loans help eligible small businesses and private nonprofits cover operating expenses after a disaster," he said. "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."
Eligible applicants can receive up to $2 million with interest rates as low as 4% for small businesses and 3.25% for private nonprofits. The loan terms can extend up to 30 years with no interest accruing or payments required until one year after the first disbursement. The specific loan terms depend on each applicant's financial condition.
For further information or to apply online, visit sba.gov/disaster. Assistance is also available through SBA’s Customer Service Center at (800) 659-2955 or via email at disastercustomerservice@sba.gov. Telecommunications relay services are accessible by dialing 7-1-1 for those who are deaf or hard of hearing.
Completed loan applications must be submitted by March 31.