SBA loans for Michigan small businesses

By Andi Anderson

The U.S. Small Business Administration (SBA) has announced that Economic Injury Disaster Loans (EIDL) are now available in Michigan for small businesses, small agricultural cooperatives, aquaculture enterprises, and most private nonprofit organizations that have experienced financial losses due to the frost and freeze that occurred from January 15 to March 21, 2024.

This declaration covers Berrien County, as well as the adjacent counties of Cass and Van Buren in Michigan, and LaPorte and St. Joseph in Indiana. These loans are available to eligible businesses and organizations that suffered direct financial losses from the disaster. However, it is important to note that the SBA’s EIDL program cannot provide loans to farmers, ranchers, or agricultural producers under this declaration, except for aquaculture enterprises.

Eligibility for these loans is determined by factors such as the size of the applicant, the type of activity, and the financial resources available. The working capital loans can be used to cover various expenses such as fixed debts, payroll, accounts payable, and other bills that could have been paid if the disaster had not occurred.

“When farmers face crop losses and a disaster is declared by the Secretary of Agriculture, SBA working capital loans become a lifeline for eligible small businesses,” said Francisco Sánchez Jr., associate administrator for the Office of Disaster Recovery and Resilience at the SBA. “These loans are the backbone that helps rural communities bounce back and thrive after a disaster strikes.”

Loan amounts can go up to $2 million, with interest rates set at 4% for small businesses and 3.25% for private nonprofit organizations. The loan terms can extend up to 30 years, and interest will not accrue, with payments deferred for 12 months from the date of the first disbursement. Loan amounts and terms will be determined based on the applicant’s financial situation.

As of October 15, 2024, funds for the Disaster Loan Program have been fully expended, but applications are still being accepted in preparation for future funding. Applicants are encouraged to apply online at sba.gov/disaster or contact the SBA Customer Service Center for further information at (800) 659-2955.

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