While Michigan small businesses are being hit hard by repercussions of the coronavirus and the precautionary measures taken to control its spread, steps are being taken to provide some relief in the form of low-interest loans and grants. Two programs were announced this week by the U.S. Small Business Administration (SBA) and Michigan Economic Development Corporation (MEDC).
Following a request by Gov. Gretchen Whitmer, Michigan has been declared eligible for disaster loan assistance through the SBA. Businesses impacted by the coronavirus can apply for loans of up to $2 million. Loans are available with a 3.75 percent interest rate and terms as long as 30 years. Deferment of payments for up to four months is also available.
Borrowers can apply directly to the SBA at https://disasterloan.sba.gov/ela/. Applicants will need to create an account with a username and password. The application requires a significant amount of financial information and will be rejected if not complete. If approved, funds will be available in approximately 30 days (approximately 21 days to process application and five days for documentation).
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