Small Business Administration providing loans to MI nonprofits hard hit by storms and floods

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LANSING, Michigan (WILX) – Certain Michigan nonprofits may be eligible to receive assistance following severe storms that have caused severe damage in their wake.

The US Small Business Administration announced Tuesday that some private Michigan nonprofits that do not provide essential government-related services may apply for low-interest disaster loans. The loans were made available following a presidential declaration of disaster for public assistance resulting from damage caused by severe storms, floods and tornadoes on June 25-26, 2021.

Loans are available for organizations such as kitchens, homeless shelters, museums, libraries, community centers, schools and colleges located in Wayne and Ionia counties.

Borrowers can request up to $ 2 million to repair or replace damaged or destroyed real estate, machinery and equipment, inventory and other business assets. According to the Small Business Administration, the interest rate is two percent with terms of up to 30 years. Applicants may be eligible for an increase in the loan amount up to 20 percent of their physical damage, as verified by the SBA, for mitigation purposes. Qualifying mitigation upgrades may include a safe room or storm shelter, sump pump, or French drain to help protect property and occupants from future damage from a similar disaster.

The SBA also offers Disaster Economic Damage Loans to help meet working capital needs, such as the ongoing operating expenses of PNP organizations. Economic disaster loan assistance is available whether or not the organization has suffered property damage.

PNP organizations are encouraged to contact their county emergency manager for information on their organization. The information will be submitted to FEMA to determine eligibility for a public assistance grant or whether the PNP should be referred to the SBA for disaster assistance.

Applicants can apply online using the Electronic Loan Application (ELA) through the SBA’s secure website at DisasterLoan.sba.gov/ela/s/ and should apply under SBA Statement # 17268 and not for the COVID-19 incident. People who are deaf or hard of hearing can call (800) 877-8339. Loan applications can also be downloaded from sba.gov/catastrophe. Completed paper applications should be mailed to: US Small Business Administration, Processing and Disbursement Center, 14925 Kingsport Road, Fort Worth, TX 76155.

The deadline for submitting claims for property damage is January 10, 2022. The deadline for submitting claims for economic damages is August 10, 2022.

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