Michigan drought loan relief remains open for small businesses and nonprofits

Traders Union
All News
Financial News
Michigan drought loan relief open

Highlights

The SBA's Economic Injury Disaster Loan program offers up to $2 million at interest rates as low as 4% for eligible Michigan small businesses and 3.625% for nonprofits.
EIDL loans cover working capital losses from drought in Bay, Genesee, Huron, Lapeer, Saginaw, Sanilac, and Tuscola counties, excluding most agricultural producers.
Application deadline for drought-related EIDL aid is June 1 with a 60-day post-deadline grace period, and payments deferred for 12 months.

Loan program terms and application timeline

As reported by the U.S. Small Business Administration, the agency is reminding eligible organizations in Michigan that its Economic Injury Disaster Loan program remains available for drought-related losses in Bay, Genesee, Huron, Lapeer, Saginaw, Sanilac and Tuscola counties.

The program covers eligible small businesses, small agricultural cooperatives, nurseries and private nonprofit organizations, including faith-based groups, with financial losses directly tied to the disaster. The SBA does not provide disaster loans to agricultural producers, farmers or ranchers under this declaration, except for aquaculture enterprises.

EIDL financing is aimed at working capital needs caused by the drought and is available even when a business or nonprofit has no physical damage. Loan proceeds may be used for fixed debts, payroll, accounts payable and other bills that cannot be paid because of the disaster.

The loan amount can reach $2 million, with interest rates as low as 4% for small businesses and 3.625% for private nonprofits. Terms can extend to 30 years, while interest does not accrue and payments are not due until 12 months after the first loan disbursement.

Recovery support for affected Michigan counties

Chris Stallings, associate administrator of the Office of Disaster Recovery and Resilience at the SBA, says the assistance is designed to support community recovery following a disaster declaration by the U.S. Secretary of Agriculture. He says the agency is pleased to offer loans to small businesses and private nonprofits affected by these disasters.

The application deadline for economic injury requests is June 1. After that date, the SBA says it still accepts applications for an additional 60-day grace period, giving affected organizations more time to seek relief.

Our earlier report on SBA Economic Injury Disaster Loans (EIDL) for Alaska’s Native Village of Kipnuk explained that eligible small businesses, cooperatives and private nonprofits could still seek working-capital relief for economic losses tied to the August 2024 severe storm and flooding. We outlined the key terms—up to $2 million in financing, low interest rates, and repayment not starting until 12 months after disbursement—along with the application deadline and a 60-day grace period for late filings.

This material may contain third-party opinions, none of the data and information on this webpage constitutes investment advice according to our Disclaimer. While we adhere to strict Editorial Integrity, this post may contain references to products from our partners.