UNION TWP. MI — A June 29 deadline for low-cost federal disaster loans is approaching, Brian Beard from the Small Business Administration outlined to the Branch County Commission on Thursday, May 7.
Residents, renters, businesses, and nonprofits impacted by the March 6 EF-3 tornado in Sherwood and Union townships can apply for SBA disaster loans with fixed interest rates from 2.875% to 8%.
There are no payments or interest during the first year. Applicants do not need to wait for insurance claims before applying.
Loan Options:
• Home Disaster Loans: For homeowners and renters to repair or replace damaged real estate and personal property, including vehicles.
• Business Physical Disaster Loans: For businesses of any size and private nonprofits to repair or replace real estate, inventory, supplies, or equipment.
• Economic Injury Disaster Loans (EIDL): For small businesses, agricultural cooperatives, aquaculture businesses, and most private nonprofits unable to meet normal financial obligations due to the disaster.
Terms and application details:
The SBA says loan terms may extend up to 30 years, although businesses with credit available elsewhere are limited by law to a maximum of 7 years.
The agency sets payments and maturity based on the borrower’s ability to repay, and collateral may be required in some cases.
Borrowers will have zero interest accrued and zero payments for the first year.
Who Can Get What:
• Homeowners: Up to $500,000 for primary residence repairs.
• Homeowners and renters: Up to $100,000 for personal property or vehicles.
• Businesses and nonprofits: Up to $2 million for physical damage or financial hardship. EIDL funds can cover payroll, inventory, rent, and utilities. The program is meant to keep operations running during recovery, not to rebuild structures.
What Applicants Need:
Be ready to provide a government ID, a recent federal tax return, contact information, financial details of income and expenses, and insurance information, if available.
The deadline for physical-damage loans is June 29, 2026. The deadline for economic injury loans is Jan. 28, 2027.
SBA loan experts are available through Friday, May 15, at the Union City Library.
For assistance, call the SBA Customer Service Center at 1-800-659-2955 or visit sba.gov/funding-programs/disaster-assistance.
Contact Don Reid, dReid@USATodayCo.Com
This article originally appeared on Coldwater Daily Reporter: SBA disaster loan deadline approaches for Michigan tornado victims
Reporting by Don Reid, Coldwater Daily Reporter / Coldwater Daily Reporter
USA TODAY Network via Reuters Connect
