Detroit City Wire

The U.S. Small Business Administration (SBA) is urging small businesses in Michigan that suffered economic losses due to severe storms and flooding from August 24-26, 2023, to apply for working capital disaster loans before the November 8 deadline.

Eligible applicants include small businesses, small agricultural cooperatives, small businesses engaged in aquaculture, and private nonprofit organizations in several Michigan counties: Allegan, Barry, Calhoun, Clinton, Eaton, Genesee, Gratiot, Ingham, Ionia, Jackson, Kent, Lapeer, Lenawee, Livingston, Macomb, Monroe, Montcalm, Muskegon, Newaygo, Oakland, Ottawa, Shiawassee St. Clair Washtenaw Wayne. Lucas County in Ohio is also eligible.

These federal Economic Injury Disaster Loans (EIDLs) are intended for working capital needs resulting from the disaster and are available even if the business did not suffer physical damage.

“To serve the economic interests of the small business community,” stated Francisco Sánchez Jr., associate administrator for the Office of Disaster Recovery and Resilience at the SBA. “The SBA’s working capital loans have an extended application timeframe of nine months from the disaster declaration which enables businesses to assess their needs. As the Nov. 8 deadline is approaching we urge businesses to act now.”

Interest rates are as low as 4% for businesses and 3.25% for nonprofit organizations with terms up to 30 years. Interest does not begin to accrue until twelve months after initial disbursement. Loan amounts and terms depend on each applicant's financial condition. These loans can be used for fixed debts payroll accounts payable and other bills that could have been paid had the disaster not occurred but are not intended to replace lost sales or profits.

On October 15 it was announced that funds for this Disaster Loan Program have been fully expended so no new loans can be issued until Congress appropriates additional funding though applications will continue being accepted processed ensuring readiness when funds become available.

Applicants should submit loan applications promptly in anticipation of future funding availability.

For more information or to apply online visit SBA.gov/disaster or contact SBA’s Customer Service Center at (800) 659-2955 email disastercustomerservice@sba.gov People who are deaf hard of hearing or have a speech disability may dial 7-1-1 for telecommunications relay services.

The deadline to return economic injury applications is November 8 2024.