LANSING — Gov. Gretchen Whitmer announced recently 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.
“This designation unlocks critical financial resources for small businesses across the state impacted by the tough, but necessary steps we have taken to mitigate the spread of coronavirus here in Michigan,” Whitmer said. “While access to these loans is vital, we are continuing to look at every resource available to support our businesses, communities and entrepreneurs around the state impacted by coronavirus.”
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.
“These SBA loans will provide critical capital for businesses facing a temporary loss of revenue as a result of coronavirus,” said Mark Burton, CEO of the Michigan Economic Development Corporation. “We are working closely with the Michigan SBDC and small business organizations around the state to ensure we can overcome the significant challenges coronavirus presents and protect the livelihoods businesses throughout the state provide.”
The application for disaster loan assistance is available at disasterloan.sba.gov/ela/. 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.
“Making Economic Injury Disaster Loans available in Michigan is the first step in helping small businesses recover,” said J.D. Collins, State Director of the Michigan SBDC. “Our team is ready and available to help businesses evaluate this loan program and access support for their long-term success.”
Today’s EIDL declaration by the SBA adds to the growing number of resources available to small businesses in Michigan negatively impacted by COVID-19, including the Michigan Small Business Relief Program, authorized by the Michigan Strategic Fund, which will provide more than $20 million in grants and loans to support businesses facing drastic reductions in cash flow and the continued support of their workforce.
The Michigan Economic Development Corporation’s (MEDC) call center stands ready to support businesses with questions about assistance available to small business through existing state programs by calling 888-522-0103. The Michigan Small Business Development Center can also provide resources for small businesses impacted by COVID-19. Visit their website sbdcmichigan.org/small-business-covid19/ for additional information. — G.G.