SBA Is Offering Loans to Southeast Michigan Homeowners and Renters Affected by Floods
The Small Business Administration is also offering loans to companies and nonprofits to help pay for necessary financial obligations, like wages or leases.
The U.S. Small Business Administration is offering two different loans in Southeast Michigan to help mitigate the impact of the June 25-26 storm that flooded basements and left cars covered with water on the freeway.
One loan, only available in Wayne and Washtenaw counties, can be used to fix physical property damage, like damages to business structures, machinery, homes or vehicles. It’s available to companies, nonprofits and — somewhat confusingly — to homeowners and renters who do not own businesses.
“We’re the U.S. Small Business Administration. We have been there since the ’50s and our mission is to help you open up and grow a business. But when disaster strikes we’re there for the entire community. That includes homeowners and renters.” –Roberto Baltodano, Small Business Administration
SBA spokesperson Roberto Baltodano says trying to notify non-businessowners that this loan can be for them too can be difficult.
“Our biggest challenge is our name,” says Baltodano. “We’re the U.S. Small Business Administration. We have been there since the ’50s and our mission is to help you open up and grow a business. But when disaster strikes we’re there for the entire community. That includes homeowners and renters.”
The SBA is offering a second loan that is only available to businesses and nonprofits. This one isn’t for physical damage but instead for economic losses. The loan can help pay for necessary financial obligations, like wages or leases, that businesses and organizations are having trouble meeting as a result of the June 25-26 storm.
“A lot of homeowners and renters are seeking assistance and so businesses may be seeing a reduction in sales,” explains Baltodano. “That is an economic injury and hence the reason we want to emphasize that businesses, while they may have not suffered a physical damage, they could be experiencing losses.”
Baltodano says the path of economic injury may extend beyond where the storm rolled through. Therefore this loan is available to companies and organizations located in Jackson, Lenawee, Livingston, Macomb, Monroe, Oakland, Washtenaw and Wayne counties.
Physical Property Damage Disaster Loan
What it’s for: For businesses to repair or replace damaged property, inventory, supplies, machinery and equipment and for homeowners or renters to repair or replace damaged homes, cars and personal items.
Who’s eligible: Businesses, homeowners and renters located in Wayne and Washtenaw counties with damage from the June 25-26 storm.
Interest rates: 1.63-3.25% for homeowners, 2.88-5.76% for businesses, 2.00% for nonprofits.
Max loan: $2 million for businesses and nonprofits, $200,000 for homeowners and $40,000 for renters.
More details: Read a loan summary here.
How to apply: You can apply here.
Deadline: Sept. 13, 2021
Economic Injury Disaster Loan
What it’s for: For businesses and nonprofits who, due to the June 25-26 storm, can’t meet financial obligations like paying employees, paying rent or leasing equipment.
Who’s eligible: Private nonprofits of any size as well as small businesses, small agricultural cooperatives and small aquaculture businesses located in Jackson, Lenawee, Livingston, Macomb, Monroe, Oakland, Washtenaw and Wayne counties.
Interest rates: 2.88% for businesses, 2.00% for nonprofits.
Max loan: $2 million
More details: Read a loan summary here.
How to apply: You can apply here.
Deadline: April 15, 2022.
Residents who would prefer a grant to repay a loan can apply for assistance through the Federal Emergency Management Agency.
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