SBA loans now available for small businesses impacted by COVID-19

*Updated 3.19.2020

Governor Gretchen Whitmer announced today the U.S. Small Business Administration (SBA) has approved her request for a statewide Economic Injury Disaster Loan (EIDL) declaration, opening the opportunity to small businesses to access low-interest loans from the SBA.

The EIDL designation means that Michigan small businesses, small agricultural cooperatives, and nonprofits that have suffered substantial economic losses as a result of the COVID-19 outbreak will now have the ability to apply for low-interest loans as part of $1 billion in funding made available to the SBA by Congress earlier this month.

The application for disaster loan assistance is available at https://disasterloan.sba.gov/e.... For businesses looking for more information on how to apply for an SBA EIDL loan or whether it is something they should consider, visit michiganbusiness.org/covid19.

*Published 3.16.2020

The Coronavirus Preparedness and Response Supplemental Appropriations Act of 2020 (H.R. 6074) expanded the Small Business Act’s definition of a disaster to include Coronavirus (COVID-19). As a result, the U.S. Small Business Association (SBA) will be able to provide Economic Injury Disaster Loans (EIDLs) under a Governor’s Certification Disaster Declaration. In order for SBA to issue an EIDL declaration, the Governor must submit a written request to SBA with supporting economic injury loss information that certifies at least five (5) small businesses in a disaster area have suffered qualifying economic injury as a result of the disaster.

In partnership with the SBA, the Whitmer administration has begun gathering the data needed to secure the declaration that will allow Michigan businesses to take advantage of SBA coronavirus relief loans. Additionally, The Governor has informed SBA that she is seeking an Economic Injury Disaster Loan Declaration for the state and has initiated the process to get the initial economic injury loss information needed to obtain the declaration. Once the declaration is granted, small businesses in qualifying areas will be able to access low interest loans through the SBA.

Small businesses that could benefit from SBA loans are encouraged to start collecting the information they’ll need to complete and submit their application. Examples of information needed can be found here. It is also helpful for small businesses to contact the MI SBA Office to speak to the hardship they’re facing as SBA can then use this to expedite the data gathering process.

For additional information or to obtain help preparing the loan application in advance of the declaration, please contact the Michigan SBA offices in Detroit or Grand Rapids.