WASHINGTON, D.C. — The U.S. Small Business Administration (SBA) announced Wednesday the availability of low interest federal disaster loans for Michigan businesses, private nonprofits, and residents affected by tornadoes occurring March 6.
The SBA issued a disaster declaration in response to a request received from Gov. Gretchen Whitmer on April 27.
The declaration covers the Michigan counties of Berrien, Branch, Calhoun, Cass, Hillsdale, Kalamazoo, St. Joseph, and Van Buren as well as Indiana counties of Elkhart, LaGrange, St. Joseph, and Steuben, which are eligible for both physical damage loans and Economic Injury Disaster Loans (EIDLs) from the SBA.
Businesses and private nonprofits are eligible to apply for business physical disaster loans and may borrow up to $2 million to repair or replace disaster-damaged or destroyed real estate, machinery and equipment, inventory, and other business assets.
Homeowners and renters are eligible to apply for home and personal property loans and may borrow up to $100,000 to replace or repair personal property, such as clothing, furniture, cars, and appliances. Homeowners may apply for up to $500,000 to replace or repair their primary residence.
Applicants may also be eligible for a loan increase of up to 20% of their physical damage, as verified by the SBA, for mitigation purposes. Eligible mitigation improvements include strengthening structures to protect against high wind damage, upgrading to wind rated garage doors, and installing a safe room or storm shelter to help protect property and occupants from future damage.
“When disasters strike, SBA’s Disaster Loan Outreach Centers play a vital role in helping small businesses and their communities recover,” said Chris Stallings, associate administrator of the Office of Disaster Recovery and Resilience at the SBA. “At these centers, SBA specialists assist business owners and residents with disaster loan applications and provide information on the full range of recovery programs available.”
SBA’s EIDL program is available to small businesses, small agricultural cooperatives and private nonprofit (PNP) organizations with financial losses directly related to the disaster. The SBA is unable to provide disaster loans to agricultural producers, farmers, or ranchers, except for small aquaculture enterprises.
EIDLs are for working capital needs caused by the disaster and are available even if the business did not suffer any physical damage. They may be used to pay fixed debts, payroll, accounts payable, and other bills not paid due to the disaster.
Interest rates are as low as 4 percent for businesses, 3.625 percent for PNPs, and 2.857 percent for homeowners and renters, with terms up to 30 years. Interest does not begin to accrue, and payments are not due, until 12 months from the date of the first loan disbursement. The SBA sets loan amounts and terms, based on each applicant’s financial condition.
As of Wednesday, April 29, SBA customer service representatives will be on hand at the Disaster Loan Outreach Centers in the primary counties of Cass, St. Joseph, and Branch to answer questions about SBA’s disaster loan program, explain the application process, and help individuals complete their application. Walk-ins are accepted, but you can schedule an in-person appointment in advance at appointment.sba.gov.
The St. Joseph County SBA Disaster Loan Outreach Center is located at HG Real Estate at 52 N. Main St. in Three Rivers until May 28. The center is open from 10 a.m. to 3 p.m. on Wednesday, April 29, and afterwards from 9 a.m. to 5 p.m. Mondays through Fridays beginning April 30 and Saturdays from 10 a.m. to 2 p.m.
To apply online, visit sba.gov/disaster. Applicants may also call SBA’s Customer Service Center at (800) 659-2955 or email disastercustomerservice@sba.gov for more information on SBA disaster assistance. For people who are deaf, hard of hearing, or have a speech disability, please dial 7-1-1 to access telecommunications relay services.
The filing deadline to return applications for physical property damage is June 29. The deadline to return economic injury applications is Jan. 28, 2027.
