The U.S. Small Business Administration (SBA) is extending support to Michigan-based small businesses and private nonprofit organizations that have experienced economic setbacks due to excessive rainfall between May and September 2024. The federal disaster loans being offered come with a low interest rate, aimed at supporting recovery efforts.
This relief effort targets entities in the primary counties of Macomb and St. Clair, as well as the adjacent counties including Lapeer, Oakland, Sanilac, and Wayne. The SBA's Economic Injury Disaster Loan (EIDL) program is available for this purpose, covering small businesses, small agricultural cooperatives, nurseries, and private nonprofits that faced financial losses due to the excessive rain.
The EIDL program provides assistance for working capital needs that may otherwise hinder business operations, even regardless of any physical damage. The funds can serve to cover fixed debts, payroll, accounts payable, and other unpaid financial obligations resulting from the disaster.
Chris Stallings, the SBA's associate administrator of the Office of Disaster Recovery and Resilience, commented, “Through a declaration by the U.S. Secretary of Agriculture, SBA provides critical financial assistance to help communities recover. We’re pleased to offer loans to small businesses and private nonprofits impacted by these disasters.”
The disaster loan maximum is $2 million, with interest rates set at 4% for small businesses and 3.250% for nonprofits, and repayment periods extending up to 30 years. Importantly, interest does not accumulate, nor are payments required, until one year after the initial loan disbursement. The loan details for each applicant are determined based on their financial situation.
For the application process, the SBA has made online resources available at sba.gov/disaster. Additionally, applicants can reach out to the SBA's Customer Service Center at (800) 659-2955 or via the email provided for more details on obtaining disaster assistance. Telecommunications relay services are accessible by dialing 7-1-1 for people with hearing or speech challenges.
Entities interested in applying have until November 28, 2025, to submit their economic injury applications.
The SBA, committed to bolstering the American business landscape, offers guidance and resources to entrepreneurs and small business owners, fostering business initiation, growth, and recovery in times of declared disaster. More information can be found on their official website.