The U.S. Small Business Administration (SBA) has announced the availability of low-interest federal disaster loans for small businesses and private nonprofit organizations in Michigan. These entities have sustained economic losses due to a drought that began on April 15, 2025.
The disaster declaration includes the primary counties of Bay, Gratiot, Midland, and Saginaw, as well as adjacent counties such as Arenac, Clare, Clinton, Genesee, Gladwin, Ionia, Isabella, Montcalm, Shiawassee, and Tuscola.
Under this declaration, SBA's Economic Injury Disaster Loan (EIDL) program is accessible to small businesses, small agricultural cooperatives, nurseries, and PNPs directly affected by the disaster. However, the SBA cannot provide disaster loans to agricultural producers like farmers or ranchers unless they are small aquaculture enterprises.
EIDLs can be used for working capital needs resulting from the disaster. They are available even if there is no physical damage to the business or organization. The funds may cover fixed debts, payrolls, accounts payable, and other expenses not met due to the drought.
Chris Stallings, associate administrator of the Office of Disaster Recovery and Resilience at the SBA stated: “Through a declaration by the U.S. Secretary of Agriculture, SBA provides critical financial assistance to help communities recover.” He added that they are "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 starting at 4% for small businesses and 3.62% for PNPs. Terms can extend up to 30 years with no interest accruing or payments required until one year after the first loan disbursement. The SBA determines loan amounts and terms based on each applicant's financial situation.
Applications can be submitted online at sba.gov/disaster. Additional information is available through SBA’s Customer Service Center via phone at (800) 659-2955 or email at disastercustomerservice@sba.gov. Those who are deaf or hard of hearing should dial 7-1-1 for telecommunications relay services.
The deadline for submitting economic injury applications is February 9th next year.