UPPER PENINSULA – The U.S. Small Business Administration (SBA) is reminding small businesses, small agricultural cooperatives, small businesses engaged in aquaculture, and most private nonprofit organizations in Michigan that the deadline to apply for working capital loans under the current drought declarations (#18175, #20133, and #20175) is September 26, 2024.
Brian Hummel, the Emergency Management coordinator of Marquette County, said there are more than a few industries in the U.P. that could still be seeing the effects of drought impacts by this year’s mild winter – especially tourism.
‘We have agriculture based businesses that would be impacted. There might be individuals in the forestry industry that have been impacted, certainly the tourism industry,” stated Hummel.
These loans are specifically available to at least a dozen Upper Peninsula Counties. Those in Alger, Delta, Gogebic, Iron, Luce, Mackinac, Marquette, Menominee, Ontonagon, and Schoolcraft counties have a fast-approaching deadline of September 26th.
A separate and more forgiving deadline applies to Dickinson County, which has been more severely impacted. Applicants in Dickinson County can apply for the same loan program under a declaration for Florence County, Wisconsin, with a filing deadline of November 27, 2024.
“This particular disaster that was declared both Florence Wisconsin and Dickinson county, Michigan were either the ones that applied initially or they were found to be the hardest impacted,” Hummel shared.
The SBA’s Economic Injury Disaster Loan (EIDL) program offers loans up to $2 million to eligible entities that suffered financial losses due to the drought. These loans can help businesses cover expenses like fixed debts, payroll, accounts payable, and other bills they would have paid if the disaster had not occurred. The interest rates are 4% for small businesses and 2.375% for private nonprofit organizations, with terms of up to 30 years. Eligibility is determined based on the size of the applicant, type of activity, and financial resources.
“This is a great opportunity, especially in this high interest environment that we’re all living and working in for these small businesses and local nonprofits to take advantage of access to capital at a lower interest rate than what they would be able to get elsewhere,” urged Hummel.
It’s important to note that, apart from aquaculture enterprises, SBA disaster loans are not available to agricultural producers, farmers, or ranchers.
“If they have those fixed costs, and they know we’ve lost a certain amount of revenue, and we’ve had 3/4 of $1 million worth of payroll that we’ve continued to pay staff to keep them employed then that’s a fixed number then they can approach the SBA with.” mentioned Hummel.
Businesses and organizations in all Upper Peninsula counties (except Dickinson County) should submit their completed loan applications to the SBA by the September 26 deadline. Dickinson County applicants have until November 27.
For more information and to apply, visit:
