WASHINGTON — The U.S. Small Business Administration is reminding small businesses and private nonprofit organizations in eight Michigan counties that they have until March 9, 2026, to apply for low-interest federal disaster loans. These loans are intended to offset economic losses caused by a drought that began May 1, 2025.
The funding is provided through the SBA’s Economic Injury Disaster Loan program, which offers working capital to eligible entities that suffered financial losses directly related to the drought. The loans can be used to pay fixed debts, payroll, accounts payable and other bills that could not be paid due to the disaster, even if the business did not suffer physical damage.
The disaster declaration covers eight counties in Michigan, including Arenac, Bay, Clare, Gladwin, Isabella, Midland, Ogemaw and Roscommon. Organizations within these specific areas are eligible to seek assistance if they have been affected by the ongoing drought.
Eligible applicants for the loans include small businesses, small agricultural cooperatives and nurseries. While the SBA cannot provide disaster loans to most agricultural producers, farmers or ranchers, aquaculture enterprises are included in the eligibility for this program.Loan amounts can reach up to $2 million with interest rates set as low as 4% for small businesses and 3.625% for private nonprofits. The SBA determines the specific loan amounts and terms, which can extend up to 30 years, based on the financial condition of each applicant.The loans feature a 12-month deferment period from the date of the first disbursement. During this time, interest does not accrue and no payments are due, allowing businesses time to stabilize their operations before repayment begins.
Chris Stallings serves as the associate administrator of the Office of Disaster Recovery and Resilience at the SBA. He noted that the loans are part of a coordinated effort following a declaration by the U.S. Secretary of Agriculture.“Through a declaration by the U.S. Secretary of Agriculture, SBA provides critical financial assistance to help communities recover,” Stallings said. “We’re pleased to offer loans to small businesses and private nonprofits impacted by these disasters.”
Applicants may apply for assistance through the SBA website at sba.gov/disaster. The agency also offers support through its Customer Service Center at (800) 659-2955 or via email at disastercustomerservice@sba.gov. People who are deaf, hard of hearing or have a speech disability can access relay services by dialing seven-one-one.
The deadline to return economic injury applications is March 9, 2026. Following that date, the SBA will observe a 60-day grace period during which it will still accept applications.