The U.S. Small Business Administration (SBA) has issued a reminder to small businesses and private nonprofit organizations in Michigan about the approaching deadline to apply for federal disaster loans. These loans are intended to help offset economic losses caused by severe storms and tornadoes that occurred on May 7, 2024. The deadline for applications is April 8, 2025.
This disaster declaration applies to the counties of Allegan, Barry, Branch, Calhoun, Cass, Kalamazoo, St. Joseph, and Van Buren. Under this declaration, the SBA’s Economic Injury Disaster Loan (EIDL) program is available to small businesses, small agricultural cooperatives, and private nonprofits with financial losses directly related to the disaster. However, agricultural producers, farmers, or ranchers are not eligible for these loans unless they operate small aquaculture enterprises.
EIDLs provide working capital needs resulting from the disaster and can be used even if no physical damage was sustained by the business or nonprofit organization. The loans may cover fixed debts, payroll expenses, accounts payable, and other bills that could not be paid due to the disaster.
"SBA loans help eligible small businesses cover operating expenses after a disaster, which is crucial for their recovery," said Chris Stallings, associate administrator of the Office of Disaster Recovery and Resilience at the SBA. "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."
Loan amounts can reach up to $2 million with interest rates as low as 4% for small businesses and 3.25% for nonprofits. Terms extend up to 30 years with interest not accruing nor payments due until 12 months after the first loan disbursement. Loan amounts and terms are determined 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. Telecommunications relay services are available by dialing 7-1-1 for those who are deaf or hard of hearing.
The deadline for submitting economic injury applications is April 8, 2025.