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Businesses Impacted by Polar Vortex Can Access SBA Disaster Loans

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Anybody who relies on stable weather for a livelihood vividly recalls the return of the Polar Vortex last winter, and many businesses sustained considerable adverse financial impact as a result. To help mitigate that impact, the U.S. Small Business Administration has announced today that they are making available what are called Economic Injury Disaster Loans to help businesses in 24 Michigan Counties recover, including those in Michigan’s Great Southwest.

That news comes on the heels of the Secretary of Agriculture’s recent disaster declaration as a result of those severely freezing weather days.

The loans are available to small businesses, small agricultural cooperatives, small businesses engaged in aquaculture and private nonprofit organizations located in Michigan as a result of the freeze from January 1st through April 30th, 2019.

The loans are available in these counties:

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  • Alcona
  • Allegan
  • Alpena
  • Arenac
  • Barry
  • Bay
  • Berrien
  • Branch
  • Calhoun
  • Cass
  • Crawford
  • Gladwin
  • Huron
  • Iosco
  • Kalamazoo
  • Montmorency
  • Ogemaw
  • Oscoda
  • Otsego
  • Roscommon
  • Saint Joseph
  • Sanilac
  • Tuscola
  • Van Buren

Kem Fleming, Director of the SBA’s Field Operations Center East says, “When the Secretary of Agriculture issues a disaster declaration to help farmers recover from damages and losses to crops, the Small Business Administration issues a declaration to eligible entities, affected by the same disaster.”

Under this declaration, the SBA’s Economic Injury Disaster Loan program is available to eligible farm-related and non-farm-related entities that suffered financial losses as a direct result of the disaster. With the exception of aquaculture enterprises, SBA cannot provide disaster loans to agricultural producers, farmers and ranchers.

The loan amount can be up to $2-million with interest rates of 3.74-percent for small businesses and 2.75-percent for private nonprofit organizations of all sizes, with terms up to 30 years. The SBA determines eligibility based on the size of the applicant, type of activity and its financial resources.  Loan amounts and terms are set by the SBA and are based on each applicant’s financial condition.  These working capital loans may be used to pay fixed debts, payroll, accounts payable, and other bills that could have been paid had the disaster not occurred.  The loans are not intended to replace lost sales or profits.

Applicants may apply online using the Electronic Loan Application (ELA) via SBA’s secure website at this link: http://Disasterloan.sba.gov

Disaster loan information and application forms may also be obtained by calling the SBA’s Customer Service Center at 800-659-2955 (800-877-8339 for the deaf and hard-of-hearing) or by sending an email to disastercustomerservice@sba.gov.

Loan applications can be downloaded from www.sba.gov. Completed applications should be mailed to: U.S. Small Business Administration, Processing and Disbursement Center, 14925 Kingsport Road, Fort Worth, TX 76155. Please note, you should submit completed loan applications to the SBA no later than Aug. 17, 2020.

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.