The U.S. Small Business Administration (SBA) has issued a reminder to small businesses and private nonprofit organizations in Michigan about the approaching deadline of August 11 to apply for federal disaster loans. These loans aim to mitigate economic losses caused by excessive rain from June 1 to July 27, 2024.
The disaster declaration includes several counties: Alcona, Alpena, Bay, Cheboygan, Clare, Crawford, Gladwin, Gratiot, Isabella, Iosco, Midland, Montmorency, Ogemaw, Oscoda, Otsego, Presque Isle, and Saginaw.
Through this declaration, SBA's Economic Injury Disaster Loan (EIDL) program is available for small businesses and private nonprofits with financial losses directly related to the disaster. However, agricultural producers are not eligible unless they are small aquaculture enterprises.
EIDLs can be used for working capital needs due to the disaster and do not require physical damage as a prerequisite. The loans may cover fixed debts and other expenses not paid because of the disaster.
“Through a declaration by the U.S. Secretary of Agriculture, SBA provides critical financial assistance to help communities recover,” said Chris Stallings from 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 can extend up to 30 years with no interest accruing or payments due until one year after the first disbursement. Loan terms depend on each applicant’s financial condition.
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. For those who are deaf or hard of hearing or have speech disabilities should use telecommunications relay services by dialing 7-1-1.
The deadline for economic injury applications is August 11.
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