Brief though it was, the impact of the May 8th early morning freeze across parts of Michigan’s Great Southwest have led to the offer of Economic Injury Disaster Loans from the U.S. Small Business Administration. What happened that morning, according to MSU fruit expert is Brad Baughman was, “The dry air allowed temperatures to drop quickly.” While it turned out to be the last spring freeze of 2017 in southwest Michigan, it was a tough hit for some. Baughman, MSU Fruit Educator, says, “Some crops were hit hard, others suffered little damage.”
As a result, the U.S. Small Business Administration (SBA) announced today that federal Economic Injury Disaster 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 frost and freeze occurrences between May 7th and May 9th, 2017.
The SBA’s disaster declaration includes the following counties:
- Allegan
- Barry
- Branch
- Calhoun
- Cass
- Clinton
- Eaton
- Gratiot
- Ionia
- Kalamazoo
- Kent
- Montcalm
- Saint Joseph
- Van Buren
Under this declaration, the SBA’s Economic Injury Disaster Loan program is available to eligible farm-related and nonfarm-related entities that suffered financial losses as a direct result of this disaster.
With the exception of aquaculture enterprises, SBA cannot provide disaster loans to agricultural producers, farmers, or ranchers. The loan amount can be up to $2 million with interest rates of 2.5-percent for private nonprofit organizations and 3.215-percent for small businesses, 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 https://disasterloan.sba.gov/ela.
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 the SBA’s website at www.sba.gov/disaster. Completed applications should be mailed to: U.S. Small Business Administration, Processing and Disbursement Center, 14925 Kingsport Road, Fort Worth, TX 76155.
Completed loan applications must be returned to SBA no later than May 1, 2018.
