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LANSING– Gov. Rick Snyder today announced the U.S. Small Business Administration (SBA) has approved his request for a physical and economic disaster declaration for Houghton County.
The declaration means residents and businesses affected by severe flooding in June are eligible to apply for financial assistance.
The declaration covers the neighboring counties of Baraga, Iron, Keweenaw and Ontonagon.
“I want to thank the SBA for making disaster assistance available to the individuals and businesses affected by the severe flooding,” Snyder said. “Getting our communities and businesses back on their feet is essential. The availability of these loans will bring some relief as they work to recover and rebuild.”
Based on information provided by the Michigan State Police, Emergency Management and Homeland Security Division, state leaders requested a joint Preliminary Damage Assessment (PDA) with federal and local leaders to review and validate the most severely damaged homes, businesses and public facilities across the affected counties. The teams conducted their assessments from June 26-29.
The SBA disaster assistance program provides low-interest disaster loans for uninsured losses incurred by homeowners, renters, businesses and nonprofit organizations to repair or replace real estate, personal property, machinery and equipment, inventory and business assets that have been damaged or destroyed. The SBA tailors the repayment of each disaster loan to the borrower’s financial capability.
The SBA will establish a disaster loan outreach center in the affected area for one-on-one assistance. Loan applications will also be made available online or by mail.
Additional information about the SBA disaster assistance program is available at www.sba.gov.
Administrator Linda McMahon made the loans available in response to a letter from Gov. Rick Snyder on Sept. 4, requesting a disaster declaration by the SBA. The declaration covers Houghton County, and the adjacent counties of Baraga, Iron, Keweenaw and Ontonagon in Michigan.
“The SBA is strongly committed to providing the people of Michigan with the most effective and customerfocused response possible to assist businesses of all sizes, homeowners and renters with federal disaster loans,” said McMahon. “Getting businesses and communities up and running after a disaster is our highest priority at SBA.”
SBA’s Customer Service Representatives will be available at the Disaster Loan Outreach Center to
answer questions about the disaster loan program and help individuals complete their applications.
The Center is located in the following community and is open as indicated:
49850 Hwy. US 41.
Hancock, MI 49930
Opens: Tuesday, Sept. 11 at 11 a.m.
Hours: 9 a.m. – 6 p.m., weekdays
Saturday, Sept. 15 from 10 a.m. to 2 p.m.
Closed: Sunday, Sept. 16
Closes: Tuesday, Sept. 18 at 4 p.m.
“Businesses and private nonprofit organizations may borrow up to $2 million to repair or replace disaster damaged or destroyed real estate, machinery and equipment, inventory, and other business assets,” said SBA’s Michigan District Director Constance Logan.
For small businesses, small agricultural cooperatives, small businesses engaged in aquaculture and most private nonprofit organizations, the SBA offers Economic Injury Disaster Loans to help meet working capital needs caused by the disaster. Economic Injury Disaster Loan assistance is available regardless of whether the business suffered any physical property damage.
“Loans up to $200,000 are available to homeowners to repair or replace damaged or destroyed real estate. Homeowners and renters are eligible for loans up to $40,000 to repair or replace damaged or destroyed personal property,” said Kem Fleming, center director of SBA’s Field Operations Center East in Atlanta.
Applicants may be eligible for a loan amount increase up to 20 percent of their physical damages, as
verified by the SBA for mitigation purposes. Eligible mitigation improvements may include a safe room or storm shelter to help protect property and occupants from future damage caused by a similar disaster.
Interest rates are as low as 3.61 percent for businesses, 2.5 percent for nonprofit organizations, and 1.938 percent for homeowners and renters with terms up to 30 years. Loan amount and terms are set by the SBA and are based on each applicant’s financial condition.
Applicants may apply online using the Electronic Loan Application (ELA) via SBA’s secure website
Businesses and individuals may also obtain information and loan applications by calling the SBA’s
Customer Service Center at 1-800-659-2955 (1-800-877-8339 for the deaf and hard-of-hearing), or by
emailing firstname.lastname@example.org. Loan applications can also be downloaded at www.sba.gov.
Completed applications should be returned to the center or mailed to: U.S. Small Business Administration, Processing and Disbursement Center, 14925 Kingsport Road, Fort Worth, TX 76155.
The filing deadline to return applications for physical property damage is Nov. 6, 2018. The deadline to
return economic injury applications is June 7, 2019.
Gov. Snyder declared a state of disaster for Houghton and Menominee counties on June 18, and added Gogebic County to the declaration on June 21, due to severe weather and widespread flooding, making available state aid and assistance to communities in the disaster area.
Presidential Disaster Declaration Timeline
Gov. Rick Snyder declared a state of disaster for Houghton and Menominee counties on June 18, and added Gogebic County to the declaration on June 21, due to severe weather and widespread flooding, making available state aid and assistance to communities in the disaster area.
By declaring a “state of disaster,” the state of Michigan made available all state resources in cooperation with local response and recovery efforts in the disaster area, as outlined in the Michigan Emergency Management Plan.
Based on information provided by the Michigan State Police, Emergency Management and Homeland Security Division, state leaders requested a joint Preliminary Damage Assessment (PDA) with federal and local leaders to review and validate the most severely damaged homes, businesses and public facilities across the affected counties.
The teams conducted their assessments from June 26-29. State officials assessed the results and determined the extent of damage reached the level for receiving federal assistance.
On July 9, Lt. Gov. Calley requested that President Trump declare a major disaster as a result of the flooding damage in Houghton, Gogebic and Menominee counties, which included a request for public and individual assistance from FEMA.
President Trump declared a major disaster for Gogebic, Houghton and Menominee counties on Aug. 3, 2018.
On Aug. 6, FEMA denied the request for individual assistance.
On Aug. 14, Gov. Snyder sent a letter appealing the denial. On Aug. 27, FEMA denied the appeal.