The Chamber has been receiving several emails about disaster assistance programs for small businesses. We are going to include them below with all their contact information, so that you can see which ones you might qualify for as you all have unique cases and situations. We will do our best to answer any questions, however, the experts on these loans, the process and qualifications are listed below.
The Michigan Economic Development Corporation (MEDC) has just announced the Michigan Small Business Relief Program which will provide up to $20 million in grants and loans to Michigan's small businesses impacted by COVID-19 outbreak. It is the intention of the Lansing Economic Area Partnership (LEAP) to administer the grant portion of MEDC's new Small Business Relief Program on behalf of the Lansing tri-county area. They feel they have the capacity to do so and the ability to act as a fair arbitrator to all parts of the region, maximizing both the total collective amount our tri-county receives and the speed at which it gets into the hands of small businesses in need. MEDC is looking to get money moving by April 1.
LEAP intends to build a small committee including the Small Business Development Center, Capital Area Michigan Works and the Lansing Community College Business and Community Institute to build the structure and process and add to boots on the ground.
What I currently know is the following:
Here is another one that was released regarding disaster assistance:
Please see the attached SVBA disaster assistance news release for Michigan. The U.S. Small Business Administration is offering low-interest federal disaster loans for working capital to Michigan small businesses suffering substantial economic injury as a result of the Coronavirus (COVID-19), SBA Administrator Jovita Carranza announced today. SBA acted under its own authority, as provided by the Coronavirus Preparedness and Response Supplemental Appropriations Act that was recently signed by the President, to declare a disaster following a request received from Gov. Gretchen Whitmer on March 17, 2020.
The disaster declaration makes SBA assistance available in the entire state of Michigan; and the contiguous counties of Elkhart, La Porte, Lagrange, St Joseph and Steuben in Indiana; Fulton, Lucas and Williams in Ohio; and Florence, Forest, Iron, Marinette and Vilas in Wisconsin.
SBA is strongly committed to providing the most effective and customer-focused response possible to assist Michigan small businesses with federal disaster loans. We will be swift in our efforts to help these small businesses recover from the financial impacts of the Coronavirus (COVID-19), said Administrator Carranza.
SBA Customer Service Representatives will be available to answer questions about SBAs Economic Injury Disaster Loan program and explain the application process.
Small businesses, private non-profit organizations of any size, small agricultural cooperatives and small aquaculture enterprises that have been financially impacted as a direct result of the Coronavirus (COVID-19) since Jan. 31, 2020, may qualify for Economic Injury Disaster Loans of up to $2 million to help meet financial obligations and operating expenses which could have been met had the disaster not occurred, said Carranza.
These loans may be used to pay fixed debts, payroll, accounts payable and other bills that cant be paid because of the disasters impact. Disaster loans can provide vital economic assistance to small businesses to help overcome the temporary loss of revenue they are experiencing, Carranza added.
Eligibility for Economic Injury Disaster Loans is based on the financial impact of the Coronavirus (COVID-19). The interest rate is 3.75 percent for small businesses. The interest rate for private non-profit organizations is 2.75 percent. SBA offers loans with long-term repayments in order to keep payments affordable, up to a maximum of 30 years and are available to entities without the financial ability to offset the adverse impact without hardship.
Applicants may apply online, receive additional disaster assistance information and download applications at https://disasterloan.sba.gov/ela. Applicants may also call SBAs Customer Service Center at (800) 659-2955 or email email@example.com for more information on SBA disaster assistance. Individuals who are deaf or hard of hearing may call (800) 877-8339. Completed applications should be mailed to U.S. Small Business Administration, Processing and Disbursement Center, 14925 Kingsport Road, Fort Worth, TX 76155.
The deadline to apply for an Economic Injury Disaster Loan is Dec. 21, 2020.
For more information about Coronavirus, please visit: Coronavirus.gov.
For more information about available SBA resources and services, please visit: SBA.gov/coronavirus.
Please feel free to distribute this release to any of your local contacts, so we can make the widest possible distribution for those affected and those that may be interested. We will provide updated information as it becomes available.
Public Affairs Specialist
Field Operations Center - East
U.S. Small Business Administration
101 Marietta St. NW, Suite 700
Atlanta, GA 30303
Cell (404) 805-7557
Fax (202) 481-6263
The Michigan Chamber has a comprehensive "Toolkit" on their website of resources for businesses.