Garrett Neese/Daily Mining Gazette Leo Islib, business development manager for the Michigan Economic Development Corporation, spoke to Houghton County business owners during a community information session in Houghton on Friday.
HOUGHTON — At a presentation Friday, Houghton County business owners heard about the recently opened Small Business Administration disaster loan program and other programs to help businesses stay open after an unusually warm winter.
The Michigan Economic Development Corporation and the Michigan Small Business Development Center hosted Friday’s information session, which was held at the Lakeshore Center.
The loan program was expanded to Houghton County earlier this month.
Long-term financing is available for up to 30 years, and interest rates are capped at 4%. No interest accrues in the first year, and the borrower does not have to make any monthly payments during that time. Loans of up to $2 million are available.
Jack Camp, acting director of communications for the SBA’s Office of Disaster Recovery and Resilience, said the loan is not intended to cover losses, but to cover working capital needs due to the lack of snow.
Unlike Ontonagon and other counties announced in March, Houghton County’s disaster loan only covers the period from Feb. 20 to the application deadline of Dec. 26.
“You can’t make eligibility decisions based on what happened in January or December.” Camp said. “…We can look forward to meeting the business’s working capital needs.”
Instead of going through a bank, businesses can apply directly at sba.gov/disaster. This program is also available to those with existing her SBA loans.
Applicants fill out personal financial statements and provide details about fixed debts and creditors. You can also submit an impact report that explains how the disaster affected you financially and what you are no longer able to do due to financial loss.
“In fact, the most important factor determining your eligibility is your needs.” Camp said. “If we come to you and say, ‘Based on our analysis of your sales and profits, you qualify for 25,000 people,’ and you say, ‘Well, we need 50 people,’ we can We can do a needs analysis for you. Look at your business and see if there are any more needs that you actually need covered.”
Houghton County was not among the first group of counties declared eligible for SBA loans in March. Drought declarations already issued by the U.S. Department of Agriculture for Ontonagon and other counties have been extended to apply into the winter season.
Eligibility was expanded to Ontonagon and neighboring Houghton County earlier this month. The Horton case comes as the governor finds at least five businesses have suffered significant financial harm.
Several people asked why the city of Houghton’s disaster declaration began on February 20th. As one manager stated, 75% of his snowmobile season has already passed, and most of it was without snow.
Leo Islib, business development manager for MEDC, showed a map from the U.S. Drought Monitor. Until Feb. 20, when the drought map was updated, the only area in Ontonagon County that was at drought levels high enough to issue a declaration was a small portion of the county’s western edge, made up mostly of public land. . Therefore, the affected person did not meet the criteria of the five companies.
Camp said businesses that apply should know within two to three weeks whether they qualify for a loan. Once you receive notification of approval, you can receive your funds electronically, which takes about three to five business days, Camp said.
During Friday’s session, business owners also heard from MEDC Small Business Resources, Keweenaw Economic Development Alliance, Visit Keweenaw, UP Small Business Development Center and UPmichigan Works. Human resources solutions.
Tammy Peterson of Peterson’s Fish Market in Hancock estimates that the warm winter has reduced her winter business by 85% to 90%, forcing her to take out loans to stay in business. .
She plans to apply for an SBA loan.
“Some of our businesses open in the summer, so we need this money to purchase supplies, products and equipment needed for our summer business.” she said.
Peterson said Friday’s session was informative.
“It helped,” she said. “He answered some questions. ”
