The U.S. Small Business Administration (SBA) has announced a program offering low-interest federal disaster loans to small businesses and private nonprofit organizations in Michigan affected by a drought that occurred from June 1 to November 14, 2024. This disaster declaration primarily impacts the county of Huron and its neighboring counties, Sanilac and Tuscola.
The Economic Injury Disaster Loan (EIDL) program under this declaration extends to eligible small businesses, small agricultural cooperatives, nurseries, and private nonprofit organizations with financial losses attributable to the disaster. Despite the broad reach of the EIDL program, the SBA stipulates that it cannot extend disaster loans to agricultural producers, farmers, or ranchers, except in cases of aquaculture enterprises.
These loans aim to cover working capital needs caused by the disaster and are available regardless of whether the organization suffered physical damage. Funds can be utilized for paying fixed debts, payroll, accounts payable, and other expenses that remained unpaid due to the disaster.
"Through a declaration by the U.S. Secretary of Agriculture, SBA provides critical financial assistance to help communities recover," stated 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 small businesses and 3.250% for private nonprofits. The repayment terms can extend to 30 years, with interest not accruing and payments not required until 12 months after the first loan disbursement. Loan amounts and terms are determined based on each applicant's financial condition.
Interested parties can apply online at sba.gov/disaster or contact the SBA's Customer Service Center at (800) 659-2955 or email disastercustomerservice@sba.gov for further information on SBA disaster assistance. Those who are deaf, hard of hearing, or have a speech disability can contact the center via telecommunications relay services by dialing 7-1-1.
The deadline for submitting economic injury applications is November 28, 2025.
About the U.S. Small Business Administration: The SBA helps empower entrepreneurs and small business owners by providing resources and support they need to start, grow, and expand their businesses, or recover from declared disasters. It offers its services through an extensive network of SBA field offices and partnerships with other public and private organizations. More information can be found at www.sba.gov.