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 faced economic losses due to a drought that began on May 1.
The disaster declaration includes the counties of Arenac, Bay, Clare, Gladwin, Isabella, Midland, Ogemaw, and Roscommon. Under this declaration, SBA’s Economic Injury Disaster Loan (EIDL) program is accessible to small businesses, small agricultural cooperatives, nurseries, and private nonprofits with financial losses directly related to the drought. However, the SBA cannot provide disaster loans to agricultural producers, farmers, or ranchers unless they are small aquaculture enterprises.
EIDLs aim to cover working capital needs caused by the disaster and are available even if there is no physical damage. The loans can be used for fixed debts, payroll, 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.”
The loan amount can reach up to $2 million with interest rates as low as 4% for small businesses and 3.625% for private nonprofits. Terms can extend up to 30 years. Interest does not accrue nor are payments due until 12 months from the first loan disbursement date. The SBA determines loan amounts and terms based on each applicant’s financial condition.
Applications can be submitted online at sba.gov/disaster or through contact with SBA’s Customer Service Center at (800) 659-2955 or via email at disastercustomerservice@sba.gov. Telecommunications relay services are available for individuals who are deaf or hard of hearing by dialing 7-1-1.
The deadline for returning economic injury applications is March 9, 2026.