Disaster Loan Assistance for Michigan and Indiana businesses and residents from the U.S. Small Business Administration
On March 6, 2020, Indiana Governor Eric Holcomb declared a public health emergency under Executive Order No. 2020-2, and on March 10, 2020, Michigan Governor Gretchen Whitmer declared a state of emergency under Executive Order No. 2020-4, both in response to the novel coronavirus (COVID-19) pandemic affecting the country. You may qualify for disaster loan assistance from the U.S. Small Business Administration (“SBA”) if your business has suffered economic loss as a result of the pandemic.
Economic loss to your business – Owners of small businesses, small cooperatives, and private non-profit organizations of any size may be eligible for up to $2 million to meet pre-existing financial obligations under an Economic Injury Disaster Loan.
Military economic loss to your business – If your essential employees are members of the military that have been called to active duty in response to the pandemic, you may apply for a Military Reservist Economic Injury Disaster Loan to meet ordinary and necessary expenses. Compensation is limited to the actual economic injury calculated by the SBA, subject to credit and collateral requirements.
Interest rates – Generally, disaster loans issued by the SBA have an interest rate of 4% if the borrower is unable to obtain credit elsewhere. For borrowers that can obtain credit elsewhere, the interest rate is 8%.
How to apply – The SBA has a three-step process for applying and receiving disaster assistance.
- Qualified borrowers can apply online at https://disasterloan.sba.gov/ela/Account/Login, or by calling the SBA Customer Service Center at 1-800-659-2955 (TTY: Deaf and Hard-of-Hearing line can be reached at 1-800-877-8339).
- SBA reviews your application and your credit to determine your loan eligibility. A loan officer will contact you to determine next steps.
- SBA will send loan closing documents for your review and signature. The initial loan disbursement ($25,000) will be made within five days of receiving your signed closing documents. Your case manager will assist you with scheduling subsequent disbursements and making any necessary loan adjustments.
For more information or to find a local disaster center, visit the SBA website at https://disasterloan.sba.gov/ela/ or contact SBA’s Customer Service Center at 1-800-659-2955 (TTY: Deaf and Hard-of-Hearing line can be reached at 1-800-877-8339).
If you require any assistance in applying for disaster assistance or would like to meet with an attorney to review your eligibility for disaster assistance, please contact one of our offices to schedule a telephonic conference with one of our attorneys.
HaasCaywood PC continues to monitor the numerous executive orders, notices, and guidelines being issued by our state and federal officials related to COVID-19 and are prepared to assist and advise you and your business in relation to the same.
Other HaasCaywood PC COVID-19 Related Blogs
- Remote Notarization and Witnessing for Estate Planning, Real Estate Closings, and Other Transactions
- “Paycheck Protection Program” Loans for Small Businesses
- Michigan Employer Guidelines under Governor Whitmer’s “Stay at Home” Order
- Expanding Paid Family and Medical Leave Due to COVID-19: What Employers and Employees Need to Know
- Disaster Loan Assistance from the U.S. Small Business Administration
- Local Court Closures Due to COVID-19
Prepared on March 20, 2020 by Tiffany Edwards