Advertisement

Small Business Administration offering loans to MI non-profits hit hard by storms, flooding

Apply for a Small Business Administration loan
Apply for a Small Business Administration loan
Published: Nov. 16, 2021 at 11:19 AM EST
Email This Link
Share on Pinterest
Share on LinkedIn

LANSING, Mich. (WILX) - Some Michigan non-profits may be eligible to receive help following harsh storms that left severe damage in their wake.

The U.S. Small Business Administration announced Tuesday that certain private non-profit organizations in Michigan that do not provide critical services of a government nature could apply for low-interest disaster loans. The loans were made available following a Presidential disaster declaration for Public Assistance resulting from damages caused be severe storms, flooding, and tornadoes on June 25 and 26, 2021.

The loans are available to organizations such as food kitchens, homeless shelters, museums, libraries, community centers, schools, and colleges located in Wayne and Ionia counties.

Borrowers can apply for up to $2 million to repair or replace damaged or destroyed real estate, machinery, and equipment, inventory, and other business assets. According to the Small Business Administration, the interest rate is two percent with terms up to 30 years. Applicants may be eligible for a loan amount increase up to 20 percent of their physical damages, as verified by the SBA, for mitigation purposes. Eligible mitigation improvements may include a safe room or storm shelter, sump pump or French drain to help protect property and occupants from future damage caused by a similar disaster.

The SBA also offers Economic Injury Disaster Loans to help meet working capital needs, such as ongoing operating expenses to PNP organizations. Economic Injury Disaster Loan assistance is available regardless of whether the organization suffered any physical property damage.

PNP organizations are urged to contact their county’s Emergency Manager for information about their organization. The information will be submitted to FEMA to determine eligibility for a Public Assistance grant or whether the PNP should be referred to SBA for disaster loan assistance.

Applicants may apply online using the Electronic Loan Application (ELA) via SBA’s secure website at DisasterLoan.sba.gov/ela/s/ and should apply under SBA declaration # 17268 and not for the COVID-19 incident. Individuals who are deaf or hard-of-hearing may call (800) 877-8339. Loan applications can also be downloaded at sba.gov/disaster. Completed paper applications should be mailed to: U.S. Small Business Administration, Processing and Disbursement Center, 14925 Kingsport Road, Fort Worth, TX 76155.

The filing deadline to submit applications for physical property damage is Jan. 10, 2022. The deadline to submit economic injury applications is Aug. 10, 2022.

Copyright 2021 WILX. All rights reserved.

Subscribe to our News 10 newsletter and receive the latest local news and weather straight to your email every morning.