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SBA Disaster Loans Available due to Impact of Freeze in MI

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December 20, 2019
It announces that Economic Injury Disaster Loans are available to small businesses, small agricultural cooperatives, small businesses engaged in aquaculture and private nonprofit organizations located in Michigan as a result of the freeze from Jan. 1 through April 30, 2019. The loans are available in the following counties: Alcona, Allegan, Alpena, Arenac, Barry, Bay, Berrien, Branch, Calhoun, Cass, Crawford, Gladwin, Huron, Iosco, Kalamazoo, Montmorency, Ogemaw, Oscoda, Otsego, Roscommon, Saint Joseph, Sanilac, Tuscola and Van Buren in Michigan. “When the Secretary of Agriculture issues a disaster declaration to help farmers recover from damages and losses to crops, the Small Business Administration issues a declaration to eligible entities, affected by the same disaster,” said Kem Fleming, director of SBA’s Field Operations Center East.
 
Under this declaration, 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.
 
The loan amount can be up to $2 million with interest rates of 3.74 percent for small businesses and 2.75 percent for private nonprofit organizations of all sizes, with terms up to 30 years. The SBA determines 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.