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DISASTER RELIEF LENDING APPROVED FOR MICHIGAN

DISASTER RELIEF LENDING APPROVED FOR MICHIGAN

The recent pandemic of COVID-19 has caused a crippling effect on small and middle-market businesses. Earlier this month Congress made $1 billion of funding available to the US Small Business Administration (SBA).

On Thursday, March 19, Governor Gretchen Whitmer announced that the SBA approved a request for a statewide Economic Injury Disaster Loan (EIDL). The announcement means that Michigan small businesses now have the opportunity to access low-interest loans from the SBA. To see if your business qualifies, see the SBA’s definition of a small business here: https://www.sba.gov/document/support--table-size-standards .

States are continually being approved for EIDLs, and eligible states can be found at https://disasterloan.sba.gov/ela/Declarations. States surrounding Michigan have been approved already as well, including Ohio, Indiana, and Illinois.

Guidelines surrounding the SBA Economic Injury Disaster Loan (EIDL):
Allows for loans of up to $2 million for Economic Injury for small business, small agricultural cooperative, small business engaged in aquaculture, or private non-profit organizations

  • The EIDL is a low-interest, 3.75% (2.75% for non-profits), fixed-rate loan for businesses without credit available elsewhere. If a business has credit available elsewhere they will not be eligible for the EIDL.
  • The loan offers up to a 30-year repayment term, which is determined on a case-by-case basis

Three step process for the loans:

  • Apply for loan: These loans are applied for online, in-person at a disaster center or by mail
  • Property verified and loan processing decision made
  • Loans closed and funds disbursed

Initial disbursement for Economic Injury is $25,000 and a case manager will be assigned to make sure all loan conditions are met and schedule subsequent disbursements. Online applications are open and it is recommended to start the process as soon as possible.

Online loans can be applied for at https://disasterloan.sba.gov/ela/

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