Loans available for Michigan businesses, others damaged by fall rain

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LANSING, Mich. – Michigan small businesses, agricultural cooperatives, small businesses engaged in aquaculture and private nonprofit organizations damaged by excessive rain Sept. 30 can apply for federal loans.

The low-interest Economic Injury Disaster Loans are available in Alger, Cheboygan, Chippewa, Emmet, Luce, Mackinac and Schoolcraft counties, the U.S. Small Business Administration said.

Loan amounts can be up to $2 million with 3% interest rates for small businesses and 2.75% for private nonprofit organizations of all sizes. The loans are not intended to replace lost sales or profits, according to the agency.

“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 eligible entities, affected by the same disaster,” said Kem Fleming, director of SBA’s Field Operations Center East.

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.

Except for aquaculture enterprises, SBA cannot provide disaster loans to agricultural producers, farmers and ranchers, the agency said.