Low-interest disaster loans from the U.S. Small Business Administration are available to businesses and residents in Michigan following the announcement of a Presidential disaster declaration due to severe storms, flooding, and tornadoes from June 25 - 26, 2021.
Businesses and private nonprofit organizations of any size may borrow up to $2 million to repair or replace disaster-damaged or destroyed real estate, machinery and equipment, inventory, and other business assets. Applicants may be eligible for a loan amount increase up to 20 percent of their physical damages, as verified by the SBA, for mitigation purposes. Eligible mitigation improvements may include a sump pump, elevation, French drain or retaining wall to help protect property and occupants from future damage caused by a similar disaster.
Applicants can learn more or apply online via SBA's secure website at:
What Types of Disaster Loans are Available?
- Business Physical Disaster Loans – Loans to businesses to repair or replace disaster-damaged property owned by the business, including real estate, inventories, supplies, machinery and equipment. Businesses of any size are eligible. Private, non-profit organizations such as charities, churches, private universities, etc., are also eligible. The law limits business loans to $2,000,000.
- Economic Injury Disaster Loans (EIDL) – Working capital loans to help small businesses, small agricultural cooperatives, small businesses engaged in aquaculture, and most private, non-profit organizations of all sizes meet their ordinary and necessary financial obligations that cannot be met as a direct result of the disaster. These loans are intended to assist through the disaster recovery period.
- Home Disaster Loans – Loans to homeowners or renters to repair or replace disaster-damaged real estate and personal property, including automobiles.
What are the Credit Requirements?
- Credit History – Applicants must have a credit history acceptable to SBA.
- Repayment – Applicants must show the ability to repay all loans.
- Collateral – Collateral is required for physical loss loans over $25,000 and all EIDL loans over $25,000. SBA takes real estate as collateral when it is available. SBA will not decline a loan for lack of collateral but requires you to pledge what is available.
What are the Interest Rates:
Interest rates are as low as 2.88% for businesses, 2% for nonprofit organizations, and 1.625% for homeowners and renters, with terms up to 30 years. Loan amounts and terms are set by the SBA and are based on each applicant’s financial condition.
How to apply:
To be considered for all forms of disaster assistance, applicants should register online at DisasterAssistance.gov or download the FEMA mobile app. If online or mobile access is unavailable, applicants should call the FEMA toll-free helpline at 800-621-3362. Those who use 711-Relay or Video Relay Services should call 800-621-3362.
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Getting Your Business Started
Starting and/or operating a business takes a lot of resources and know-how. This is a one-stop shop for many of the helpful agencies that can assist your business in getting started. If you don't see something that you need, please contact our Economic Development office at 734-394-5229 for assistance.
- Canton Chamber of Commerce
- Canton Downtown Development Authority (DDA)
- Canton Public Library
- Michigan Economic Development Corporation
- Michigan Works
- Shop Canton
- Southeast Michigan Community Alliance Menu of Services (PDF)
Additional Links & Business Resources
- Ann Arbor Area SCORE - Resource Partner with the U.S. Small Business Administration
- Commerce Connect (PDF) - A U.S. Department of Commerce (DOC) initiative aimed at helping businesses connect with Commerce Department staff and programs
- Michigan Business Network
- Michigan Certified Development Corporation
- Michigan Manufacturing Technology Center
- Michigan Small Business and Technology Development Center
- Schoolcraft College: Business Development Center Services Overview (PDF)
- University of Michigan Center for Entrepreneurship
- Guide to Writing a Business Plan
- 18 Small Business Grants for Minorities