LANSING, Mich. (WZMQ) – All but 4 U.P. counties are eligible for Small Business Administration (SBA) loans to assist with revenue loss from the lack of snow this winter. Governor Gretchen Whitmer is urging small businesses impacted by the lack of snow to apply for federal disaster funding announced on Monday.
The disaster drought decelerations from the U.S. Department of Agriculture will allow small business owners directly impacted by the lack of snow this winter to apply for loans to assist with basic operation costs. Those applications can be found at: sba.gov/disaster
Mary Beth DeFazio, President of the Lake Gogebic Chamber of Commerce said they’ve estimated over $15 million in losses this winter in Gogebic and Ontonogan Counties.
“It’s been devastating for many businesses,” DeFazio said. “Everybody’s been working and turning over every rock that they could to find some way to provide some assistance.”
State Representative Greg Markkanen said they are still working on getting Houghton, Baraga, Chippewa, and Keweenaw counties similar funding. The drought designation is based on a federal threshold that measures rain and snowfall, which the counties either exceeded, or businesses didn’t see enough of a loss in revenue to qualify.
“What this is going to do is open up small business loans for businesses so they can get through this drought period and stay afloat,” Markkanen said. “I know that businesses are hurting. I feel for them and we’re trying to do everything humanly possible. We don’t want our small businesses going under.”
Jack Camp with the SBA explained that there is no cap on the amount a business can receive to cover payroll, mortgage, and utility costs. The working capital loans are interest-free for the first 12 months, after that interest is set at 4%. Camp said there’s no cost to apply, and businesses aren’t obligated to accept the loans they apply for, to keep the loans low risk for businesses and allow them to pay them back at a reasonable pace.
The loans are available to 42 counties across the state. In the U.P. there are four different declarations. Drought Designation #18275 which covers Gogebic, Iron, and Ontonogan Counties. #20175 covers Alger, Delta, Luce, Marquette, Menominee, and Schoolcraft. While #20133 includes Mackinac County, and #20209 covers Dickinson County. That full list of counties and declarations can be viewed here: www.michigan.gov/whitmer/news/press-releases/2024/03/04/whitmer-urges-businesses-impacted-by-lack-of-snow-to-apply-for-available-federal-funding
State and federal lawmakers worked alongside small business owners, the Michigan Economic Development Corporation, and Invest UP to find these solutions for those struggling this winter. The U.P. Representatives said they’re hopeful those counties left out will be included eventually. Camp explained that the governor can certify a disaster declaration for a county if five or more businesses have documented significant losses directly related to the lack of precipitation.
“I think that this is going to help a lot of people breathe easier, pay their bills, get current. “ DeFazio said. “While we may not be able to recoup what we’ve lost in the last few months, we can certainly plan for the rest of 2024.”
Defazio explained that businesses around Lake Gogebic are still concerned about some of the long-lasting impacts. She said that without the snow this winter, lake levels are at risk of lowering without the runoff from the snow melt. That effect could cause issues for summer recreation in the area as well.
“Businesses have had to scale back. They’ve had to pivot.” Defazio said. “They’ve had to just do whatever they can do to get through this challenging time.”
Representative Markkanen said at this point they don’t know when the federal drought funding will be awarded to applicants, some of whom are already worried about having to close their doors.
“We’ve heard about a number of businesses that are right on the edge in the western U.P. and we’re concerned,” Markkanen said. “We’re going to try to push this through as quick as possible.”
The SBA has announced an extension of the deadlines for applications under all declarations to September 26th, Camp said loans will still be awarded as individual applications are received and processed.
