The U.S. Small Business Administration (SBA) has announced federal disaster loans for small businesses and private nonprofit organizations in Michigan, addressing economic losses from the drought from June 1, 2024, to December 31, 2024. This disaster declaration incorporates several primary counties, including Antrim, Grand Traverse, Kalkaska, Leelanau, and Otsego, as well as the adjacent counties of Benzie, Charlevoix, Cheboygan, Crawford, Manistee, Missaukee, Montmorency, Oscoda, Roscommon, and Wexford.
Eligible entities under the declaration can utilize the SBA’s Economic Injury Disaster Loan (EIDL) program. This option is available for small businesses, small agricultural cooperatives, nurseries, and private nonprofit organizations (PNPs) that have suffered financial losses due to the drought. The SBA particularly stipulates, "The SBA is unable to provide disaster loans to agricultural producers, farmers, or ranchers, except for aquaculture enterprises."
Chris Stallings, SBA's associate administrator of the Office of Disaster Recovery and Resilience, stated, “Through a declaration by the U.S. Secretary of Agriculture, SBA provides critical financial assistance to help communities recover.” He further noted, “We’re pleased to offer loans to small businesses and private nonprofits impacted by these disasters.”
These loans aim to cover working capital needs resultant from the disaster. They can address fixed debts, payroll, and other bills incurred due to the economic impact of the drought, irrespective of physical damage. The loan amounts may reach up to $2 million, with interest rates starting at 4% for small businesses and 3.250% for PNPs, allowing for repayment terms up to 30 years. Notably, interest and payments are deferred until 12 months after the first loan disbursement.
Interested applicants should visit sba.gov/disaster. Further information is available via the SBA’s Customer Service Center at (800) 659-2955 or through email at disastercustomerservice@sba.gov. Telecommunications relay services can be accessed by dialing 7-1-1 for the deaf or those with hearing or speech disabilities. The deadline for submitting economic injury applications is November 28, 2025.
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