Gov Whitmer Secures Historic US Small Business Administration Disaster (2024)

FOR IMMEDIATE RELEASE

July 11, 2024

Contact: press@michigan.gov

Gov. WhitmerSecuresHistoric U.S Small Business AdministrationDisasterAssistance for Kalamazoo County

LANSING, MICH.-- Today, Governor Gretchen Whitmer announced that the U.S. Small Business Administration (SBA) has granted an administrative declaration of disaster for Kalamazoo County. The SBA disasterassistanceprogram will make low-interest loans available to residents and businesses affected by severe storms and tornadoes on May 7. This is the first use of an SBA rapid declarationnationwide since the path became available in January,highlighting Michigan as a leading state in the nation for recovery efforts.

“Today’sSBArapid declaration—the first ever—will providethe resources and supportMichiganders in Kalamazoo County need to recover fromMay’sseverestorms and tornadoes,”saidGovernor Whitmer. “Rebuildingefforts arealready underway,andthese loans willsupport a lot of good,ongoing work as we continue tomove forward. I am proud we are staying proactive and grateful to the SBA for their speed and professionalism.Michiganders arestrong, and we willget through this together.”

The SBA disasterassistanceprogram provides low-interest loans for homeowners, renters, businesses of all sizes and private nonprofit organizations to repair or replace real estate,personal property, machinery and equipment, inventory, and business assets that were damaged or destroyed. The SBA tailors the repayment of each disaster loan to the borrower’s financial capability. This declaration covers Kalamazoo County and adjacent counties, including Allegan, Barry, Branch, Calhoun, Cass, St. Joseph, and Van Buren.

“Communities across Kalamazoo County have shown incredible resiliency in the wake of the devastating May 7 tornadoes and storms,” saidU.S. Congressman Bill Huizenga. "Nevertheless,it is clear that additionalfederal resources are needed and deserved, which is whyI’mglad to see the SBA Rapid Disaster Declaration approved as a next step towards recovery for local businesses. I eagerly await the Biden Administration’s decision on our request for a Major Disaster Declaration to allow more robustassistanceto the families and individualsimpactedby these terrible storms.”

"From the moment these tornadoes and severe storms hit our communities, I have been working with the governor and other local, state and federal officials to provide swift relief and support for everyone affected," saidstateSenatorSean McCann(D-Kalamazoo). "With the recent funding we were able to secure in our state budget and today's major announcement of assistance from the Small Business Administration, we are continuing to do everything we can to help our residents, business owners and communities rebuild, recover and come back stronger than ever."

"The terrible storms in Maycaused an incredible amount of damage in Kalamazoo County. Iamextremely grateful for the immediate action of our local first respondersto help our residents in whatever ways they could. However, recovery efforts for residents and local businesses are ongoing,” saidstate RepresentativeChristine Morse(D-Texas Township). “Iwould like to express my immensegratitude on behalf ofthe 40thDistrictto the SBA for their quickdecision-making indelivering this disasterassistance.The SBA’s support is critical to helping our residents recover from these disasters as soon as possible.”

"Our Kalamazoo community has been resilient as we continue to rebuild and recover from the damage caused by the strong storms and tornadoes in May,” saidstate RepresentativeJulie M. Rogers(D-Kalamazoo). “I amvery gratefulfor the immediate response from first responders and the state and federal government agencies that provided relief to our residents. As we continue to move forward, I am thankful for the Small Business Administration’s disasterassistancefor our community. Their quick action will go a long way in helping our residents rebuild and return to their everyday lives.”

The SBA mayestablisha temporary Disaster Loan Outreach Center in the impacted area for one-on-oneassistance. Loan applications are also available online or by mail. Foradditionalinformation on low-interest SBA loans or thedisasterassistanceloanapplicationprocess, visit theMySBALoan Portalathttps://lending.sba.govor call 1-800-659-2955.

About the Disaster: On May 7, severe thunderstorms and tornadoes struck the southwest part of the state. The storm system resulted in roughly sixteen injuries, and caused significant damage to homes, businesses, and the power grid. Hail ranging from one to four inches in diameter was also reported along with dangerous straight-line winds. Debris removal and other storm related clean-up has lasted several weeks. Much of the damage was centered in Kalamazoo County.

OnJune 6, Governor Whitmer requesteda Presidential disaster declarationthrough theFederalEmergency Management Agency(FEMA)for theState of Michigan in response to theMay 7storms,seeking activation of all Individual Assistance programsfor especially impacted areas within Kalamazoo, St. Joseph, Branch, and Cass counties.While that process is still underwayand the state awaits theFEMAdecision, Governor Whitmer onJuly 5 requested a rapid declaration through a path that SBA has only madeavailable starting this past January.Thenewpath allows SBA to providelow-interest loanswhereappropriate withouthaving to await the full completion of the FEMA request process. With today’s announcement, Michigan becomes the first state to take full advantage of this path.

For more information on how to prepare before, during and after an emergency or disaster, visitwww.michigan.gov/mireadyor follow MSP/EMHSD on Twitter at @MichEMHS.

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Gov Whitmer Secures Historic US Small Business Administration Disaster (2024)

FAQs

Was the Small Business Administration SBA was established by the federal government to provide financial assistance to small businesses? ›

SBA was created in 1953 as an independent agency of the federal government to aid, counsel, assist and protect the interests of small business concerns; preserve free competitive enterprise; and maintain and strengthen the overall economy of our nation.

Which SBA loan program would small businesses devastated by floods earthquakes fires and other maladies seek assistance through? ›

About mitigation assistance

SBA offers low-interest disaster loans to homeowners and small businesses impacted by declared natural and other disasters. Eligible SBA disaster loan borrowers may choose to receive expanded funding to help mitigate their home or business against future disasters.

Is U.S. Small Business Administration legitimate? ›

Official SBA emails will always come from addresses ending in @sba.gov. Be skeptical of any other sources. Watch out for emails misusing the SBA logo.

Who funds the Small Business Administration? ›

Where Does the SBA Get Its Funding? The SBA receives an annual budget approved by the federal government. This money goes toward salaries, grant and loan programs, and administrative costs. Keep in mind that the SBA doesn't actually provide loans to small businesses.

How do I get my SBA disaster loan forgiven? ›

SBA PPP Direct Forgiveness Portal

After registration, you may use this streamlined process to automatically submit your forgiveness request to your lender. The SBA also offers live customer service to borrowers at 877-552-2692. If you already have Log-in credentials, you can login here.

Do you have to pay back SBA disaster loans for small business? ›

If you are approved for a loan, you are not obligated to accept it. Funds you get from SBA must be repaid over time. For questions about the SBA disaster loan program, please call the SBA at 800-659-2955 (TTY: 800-877-8339).

Is it worth getting an SBA disaster loan? ›

SBA disaster loans are the largest source of federal disaster recovery funds for survivors. SBA disaster loans cover losses not fully compensated by insurance, FEMA grants or other resources. Survivors should not wait for an insurance settlement before submitting an SBA loan application.

Is an SBA loan considered federal financial assistance? ›

The SBA works with different organizations to provide federal financial assistance and community resources for certain small businesses.

Why was the SBA created? ›

The Small Business Administration (SBA) was founded under the 1953 Small Business Act to “aid, counsel, assist and protect, insofar as is possible, the interests of small business concerns.”

What is SBA in federal government? ›

Created in 1953, the U.S. Small Business Administration (SBA) continues to help small business owners and entrepreneurs pursue the American dream.

What government organization was created to help small businesses? ›

The SBA was created in 1953 through the Small Business Act as an independent agency of the Federal Government to aid, counsel, assist, and protect the interests of small business concerns; to preserve free competitive enterprise; and to maintain and strengthen the overall economy of our nation.

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