TRAVERSE CITY -- Federal economic disaster loans are available through the U.S. Small Business Administration for small businesses, small agricultural cooperatives and most private nonprofit organizations in Michigan stemming from drought conditions last summer.
The SBA's disaster declaration includes Antrim, Charlevoix, Cheboygan, Crawford, Grand Traverse, Kalkaska and Otsego counties among dozens in the state.
"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 assist eligible entities affected by the same disaster," said Frank Skaggs, director of SBA's Field Operations Center East.
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 the drought. Agricultural producers, farmers and ranchers are not eligible to apply to SBA, but nurseries are eligible to apply for economic injury disaster loans for losses caused by drought conditions.
The loan amount can be up to $2 million with a 4 percent interest rate and 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.
Disaster loan information and application forms may be obtained by calling the SBA's Customer Service Center at 800-659-2955 or by sending an e-mail to disastercustomerservice@sba.gov.
Loan applications can be downloaded from the SBA's Web site at www.sba.gov/services/disasterassistance. Completed loan applications must be returned by Oct. 1.
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