Some Michigan small businesses now eligible for disaster loan
LANSING, Mich. (WILX) - Friday, the U.S. Small Business Administration (SBA) announced Economic Injury Disaster Loans (EIDL) are available to small businesses, small agricultural cooperatives, small businesses engaged in aquaculture, and most private nonprofit organizations in declared counties in Michigan. This is due to the excessive rain from June 1 through July 10, 2021.
Low-interest disaster loans are available in the following counties: Branch, Calhoun, Hillsdale, Huron, Kalamazoo, Saint Joseph, Sanilac, and Tuscola in Michigan. In Indiana’s and Lagrange and Steuben counties the same loans will be made available as well.
“When the Secretary of Agriculture issues a disaster declaration to help farmers recover from damages and loss to crops, the U.S. Small Business Administration issues a declaration that covers other eligible entities affected by same disaster,” said Kem Fleming, director of SBA’s Disaster Field Operations Center East.
The declaration means the SBA’s Economic Injury Disaster Loan program is available to eligible farm-related and nonfarm-related entities that suffered financial losses as a direct result of this disaster. With the exception of aquaculture enterprises, SBA cannot provide disaster loans to agricultural producers, farmers, and ranchers. Notably however, nurseries are eligible to apply for economic injury disaster loans for losses caused by drought conditions.
The loan amount can be up to $2 million with interest rates of 2.88% for small businesses and 2% for private nonprofit organizations of all sizes, with terms up to 30 years. The SBA will determine eligibility based on the size of the applicant, type of activity and its financial resources. Loan amounts and terms are set by the SBA and are based on each applicant’s financial condition. These working capital loans may be used to pay fixed debts, payroll, accounts payable, and other bills that could have been paid had the disaster not occurred.
The loans are not intended to replace lost sales or profits.
Applicants may apply online using THIS LINK. Candidates should apply under SBA declaration # 17252, not for the COVID-19 incident.
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