FOR IMMEDIATE RELEASE April 4, 2024 Contact: [email protected]
Gov. Whitmer Urges Federal Government to Create New Paths of Federal Relief for Businesses Impacted by Low-Snow Winters
LANSING, Mich. -- Yesterday, Governor Gretchen Whitmer sent a letter to congressional leadership and the heads of the Small Business Administration (SBA) and Federal Emergency Management Agency (FEMA) urging them to create new paths of federal relief for those impacted by exceptionally warm winters. Amid the warmest winter on record, Governor Whitmer worked with the federal government to secure assistance for businesses in previously designated drought areas, but some counties in the Upper Peninsula and most of the Lower Peninsula are not currently eligible under current federal guidelines.
"Michiganders are used to tough winters, but this year’s record-setting warm winter has been tough in a different way, causing economic hardships for small businesses and regional economies that rely on snow,” said Governor Whitmer. “I appreciate the federal government working with us to deliver financial relief to businesses in 43 counties around the state. However, this solution left out many counties that truly need assistance, which is why I’m asking the federal government to create new paths of federal relief for all impacted. We know climate change will only exacerbate this issue in future years, and there needs to be reliable and well-tailored programs to help in those cases.”
View the full letter here.
In addition to encouraging the federal government to develop regulatory or legislative solutions that can ensure businesses impacted by an exceptionally “warm winter” can seek appropriate federal relief, the governor announced that the SBA approved a new declaration that extends relief to Houghton County, bringing the total areas eligible for assistance to 43 counties. Note that due to unique drought conditions, the new Houghton County declaration covers business impacts from February 20, 2024 and beyond only. The SBA also extended the deadlines for businesses to apply for assistance in some counties, which will allow owners more time to calculate losses and submit those for federal financial assistance.
Record-Breaking Winter
Drought Designation Under the expanded declaration, 43 Michigan counties are covered by a disaster designation for drought from the U.S. Department of Agriculture. Through SBA declarations related to those designations, businesses in these counties may be eligible for emergency loans that offset their business losses if the loss is related to the drought.
There are the 43 counties covered by five different SBA drought declarations. Where two declarations cover one county, businesses can apply under either declaration. Applicable SBA declarations and relevant deadlines are as follows:
SBA Economic Injury Disaster Loans SBA Economic Injury Disaster Loans are designed to help businesses through disaster situations that have impacted their economic well-being. Loans are up to $2 million to help meet financial obligations and operating expenses that could have been met had the disaster not occurred. Businesses pay no interest on the loan for the first year and a maximum rate of 4% for the rest of the loan period. Businesses must apply by the application deadline for their county.
Applicants are encouraged to contact the Michigan Small Business Development Center at 1-833-522-0025 or email [email protected] for assistance in the application process. Submit applications and find additional disaster assistance information at https://lending.sba.gov. Call SBA’s Customer Service Center at (800) 659-2955 or email [email protected] for more information on SBA disaster assistance. If you are deaf, hard of hearing, or have a speech-related disability, please dial 7-1-1 to access telecommunications relay services.
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