The U.S. Small Business Administration (SBA) has issued a reminder for small businesses and private nonprofit organizations in Michigan about the upcoming deadline to apply for federal disaster loans. These loans aim to mitigate economic losses caused by excessive rain and flash flooding that occurred on July 9-10, 2024. The deadline for applications is August 11.
The disaster declaration includes several Michigan counties: Genesee, Lapeer, Macomb, Oakland, Sanilac, St. Clair, and Tuscola. The SBA’s Economic Injury Disaster Loan (EIDL) program offers support to small businesses, small agricultural cooperatives, nurseries, and PNPs affected by the disaster. However, it does not extend to agricultural producers like farmers or ranchers unless they are small aquaculture enterprises.
EIDLs provide working capital needs due to the disaster and can be used even if there is no physical damage. The loans cover fixed debts, payroll, accounts payable, and other bills that remain unpaid because of the disaster.
Chris Stallings from 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 these loans to those impacted.
Loans can reach up to $2 million with interest rates as low as 4% for small businesses and 3.25% for PNPs. Terms may extend up to 30 years with no accrued interest or payments required until one year after disbursement. Loan amounts and terms depend on each applicant’s financial situation.
Applications can be submitted online at sba.gov/disaster or by contacting SBA’s Customer Service Center at (800) 659-2955 or via email at disastercustomerservice@sba.gov. Telecommunications relay services are available for those who need them by dialing 7-1-1.
The application deadline is set for August 11.