Michiganders who suffered damage due recent flooding can rebuild stronger by applying for a disaster loan from the U.S. Small Business Administration (SBA). The disaster loan program may include funding to reduce future property damage from a similar disaster.
Applicants affected by severe storms, flooding, and tornadoes from June 25-26, 2021 may be eligible for a loan increase up to 20 percent of their physical damages, as verified by the SBA, to cover the cost of improvements. Mitigation loan funding is in addition to the amount of the approved loan.
Examples of mitigation projects to prevent future flooding may include grading and runoff improvement, elevating mechanicals, utilities, and service equipment, and installing flood vents, a flood alert system, sump pump, French drain, or retaining wall.
Businesses of all sizes, private nonprofit organizations, homeowners, and renters that are eligible for an SBA disaster loan and do not apply before the deadline may be leaving disaster funds on the table. Property owners repairing damages that were not covered by FEMA or private insurance, find in most cases SBA disaster loans cover landscaping, decks, fencing, sheds, garages, walkways, and driveways that were damaged due to the declared incident.
“Currently in Michigan, the SBA has approved 284 disaster loans in the amount of $8,626,200 for affected survivors. The SBA encourages anyone who has not applied to act now,” said Kem Fleming, director of SBA’s Field Operations Center East in Atlanta.
The disaster declaration covers Washtenaw and Washington counties in Michigan, which are eligible for both Physical and Economic Injury Disaster Loans from the SBA. Small businesses and most private nonprofit organizations in the following adjacent counties are eligible to apply only for SBA Economic Injury Disaster Loans: Jackson, Lenawee, Livingston, Macomb, Monroe, and Oakland in Michigan.