By Andi Anderson
The U.S. Small Business Administration (SBA) has announced the availability of federal Economic Injury Disaster Loans (EIDLs) for small businesses and nonprofits in Michigan affected by the drought that began on October 8, 2024.
These loans are intended to help eligible entities recover from financial losses caused by the drought.
The disaster declaration applies to Lenawee County in Michigan, as well as neighboring counties: Hillsdale, Jackson, Monroe, and Washtenaw in Michigan, and Fulton and Lucas counties in Ohio.
According to Francisco Sánchez, Jr., associate administrator for the Office of Disaster Recovery and Resilience, SBA’s working capital loans can be a lifeline for small businesses affected by drought, helping rural communities bounce back.
While SBA cannot issue disaster loans directly to farmers or ranchers, farm-related businesses such as nurseries and aquaculture enterprises are eligible for assistance under this program.
Loan amounts can reach up to $2 million, with interest rates of 4% for small businesses and 3.25% for private nonprofit organizations. These loans come with flexible repayment terms of up to 30 years, and interest does not accrue until 12 months after the first loan disbursement.
Loan eligibility is based on the applicant’s financial condition, size, and business type. Funds can be used to cover fixed debts, payroll, accounts payable, and other operational expenses.
As of October 15, 2024, funding for the Disaster Loan Program has been fully expended, but the SBA continues to accept applications. Approved loans will be processed once Congress allocates additional funding.
Businesses affected by the drought are encouraged to submit their applications promptly. The deadline for submission is June 16, 2025.
Photo Credit: pexels-karolina-grabowska
Categories: Michigan, Business