The U.S. Small Business Administration (SBA) has issued a reminder to small businesses and private nonprofit organizations in Michigan regarding the approaching deadline of August 11 to apply for low-interest federal disaster loans. These loans aim to offset economic losses resulting from drought and excessive heat that occurred on July 28, 2024.
This disaster declaration includes the Michigan counties of Alcona, Alpena, Cheboygan, Crawford, Iosco, Montmorency, Ogemaw, Oscoda, Otsego, and Presque Isle.
The SBA's Economic Injury Disaster Loan (EIDL) program is available under this declaration to assist small businesses, small agricultural cooperatives, nurseries, and PNPs with financial losses directly related to the disaster. However, the SBA cannot provide disaster loans to agricultural producers such as farmers or ranchers unless they are small aquaculture enterprises.
These EIDLs cater to working capital needs caused by the disaster and are available even if there was no physical damage. The loans can cover fixed debts, payrolls, accounts payable, and other bills not paid due to the disaster.
“Through a declaration by the U.S. Secretary of Agriculture, SBA provides critical financial assistance to help communities recover,” said 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 3.25% for PNPs. Terms extend up to 30 years with no accrued interest or payments required until 12 months after the first loan disbursement. The SBA determines loan amounts and terms based on each applicant’s financial condition.
Applications can be submitted online at sba.gov/disaster. For more information on SBA disaster assistance, applicants may call SBA’s Customer Service Center at (800) 659-2955 or email disastercustomerservice@sba.gov. Telecommunications relay services are available by dialing 7-1-1 for those who are deaf or hard of hearing.
The deadline for returning economic injury applications is August 11, 2025.