SBA Disaster Loans are Vital for Community Recovery, Now top $1 Million in Michigan for Severe Storms and Flooding
ATLANTA –Disaster loans from the U. S. Small Business Administration are vital to community recovery because they provide an affordable way for businesses, private nonprofit organizations, homeowners and renters to pay for up to 100 percent of their uninsured disaster related losses. The SBA has approved more than $1 million in disaster loans for businesses and residents with losses resulting from severe storms and flooding in Michigan on May 16-22, 2020.
“Currently, 19 disaster loans have been approved in the amount of $1,221,800 for affected survivors. The SBA encourages anyone who has not applied to act now. Our mission is to help businesses and residents rebuild and resume their normal lives as quickly as possible,” said Michael Lampton, acting director of SBA’s Field Operations Center East in Atlanta.
The loans are available in Arenac, Gladwin, Iosco, Midland and Saginaw counties in Michigan which are eligible for both Physical and Economic Injury Disaster Loans from the SBA. Small businesses and most private nonprofit organizations in the following adjacent counties are eligible to apply only for SBA Economic Injury Disaster Loans: Alcona, Bay, Clare, Genesee, Gratiot, Isabella, Ogemaw, Oscoda, Roscommon, Shiawassee and Tuscola in Michigan.
In accordance with health precautions for the Coronavirus (COVID-19), the SBA will not establish a field presence to assist survivors. However, SBA will continue to provide first class customer service and conduct outreach virtually with webinars, skype calls, phone assistance and step-by-step application assistance. As a result, SBA has opened a Virtual Disaster Loan Outreach Center/Business Recovery Center (VDLOC/VBRC) to help survivors apply online using the Electronic Loan Application (ELA) via the SBA’s secure website at https://disasterloanassistance.sba.gov/ and there are virtual customer support representatives available to assist applicants with completing the online application. The VDLOC/VBRC information:
Virtual Disaster Loan Outreach Center/Business Recovery Center (VDLOC/VBRC)
Open: Monday – Friday 8 a.m. – 5 p.m. Closed: Saturdays and Sunday
Phone: (571) 422-8013, (571) 422-6016 and (571) 422-0331.
These services are only available for the Michigan disaster declaration due to the Severe Storms and Flooding on May 16-21, 2020, and not for COVID-19 related assistance.
Survivors should contact the Disaster Assistance Professionals at (571) 422-8013, (571) 422-6016 and
(571) 422-0331 to schedule an appointment for immediate one-on-one assistance in completing their
applications. Requests for SBA disaster loan program information may be obtained by emailing FOCE- Help@sba.gov. The SBA will conduct extensive outreach to ensure that all impacted by the disaster are afforded the opportunity to seek assistance.
Businesses and private nonprofit organizations of any size may borrow up to $2 million to repair or replace disaster damaged or destroyed real estate, machinery and equipment, inventory, and other business assets. Applicants may be eligible for a loan increase up to 20 percent of their physical damages, as verified by the SBA for mitigation purposes. Eligible mitigation improvements may include a safe room or storm shelter, sump pump, french drain or retaining wall to help protect property and occupants from future damage caused by a similar disaster.
For small businesses, small agricultural cooperatives, small businesses engaged in aquaculture and most private nonprofit organizations, the SBA offers Economic Injury Disaster Loans to help meet working capital needs caused by the disaster. Economic Injury Disaster Loan assistance is available regardless of whether the business suffered any physical property damage.
Disaster loans up to $200,000 are available to homeowners to repair or replace disaster damaged or destroyed real estate. Homeowners and renters are eligible up to $40,000 to repair or replace disaster damaged or destroyed personal property.
Interest rates are as low as 3 percent for businesses, 2.75 percent for nonprofit organizations and
1.25 percent for homeowners and renters with terms up to 30 years. Loan amounts and terms are set
by the SBA and are based on each applicant’s financial condition.
To be considered for all forms of disaster assistance, applicants should register online at DisasterAssistance.gov or download the FEMA mobile app. If online or mobile access is unavailable, applicants should call the FEMA toll-free helpline at 800-621-3362 or (TTY) 800-462-7585. Multilingual operators are available.
Survivors may apply for an SBA Disaster Loan online using the Electronic Loan Application (ELA) via the
SBA’s secure website at DisasterLoan.sba.gov.
Additional details on the locations of Disaster Recovery Centers and the loan application process can be obtained by calling the SBA Customer Service Center at 800-659-2955 (800-877-8339 for the deaf and hard-of-hearing) or by sending an e-mail to firstname.lastname@example.org.
The filing deadline to return applications for physical property damage is Sept. 8, 2020. The deadline to return economic injury applications is April 9, 2021.
About the U.S. Small Business Administration
The U.S. Small Business Administration makes the American dream of business ownership a reality. As the only go-to resource and voice for small businesses backed by the strength of the federal government, the SBA empowers entrepreneurs and small business owners with the resources and support they need to start, grow or expand their businesses, or recover from a declared disaster. It delivers services through an extensive network of SBA field offices and partnerships with public and private organizations. To learn more, visit www.sba.gov.