It was a sigh of relief to the agriculture-related businesses when the United States Business Administration announced on Tuesday that they would offer merchant loan to any ag-related business around southwest Michigan due to the rampant rains and flooding experienced in March 2019.
This Economic Injury Disaster Loan will be offered to small agricultural cooperatives, private nonprofit institutions, small businesses, small agricultural businesses in Berrien, Saint Joseph, Cass, Branch, Hillsdale counties that were affected during the extreme weather experienced during March.
“These counties are eligible because they are contiguous to one or more primary counties in Indiana. Small Business Administration recognizes that disasters do not usually stop at county or state lines. For that reason, counties adjacent to primary counties named in the declaration are included,” Small Business Administration Field Operations Center East Director Kem Fleming made the announcement on Tuesday of the 10th day of September 2019.
It’s also good to know the criteria used to qualify the businesses for loans. The eligible businesses were based on size, the type of business they do and the financial resources they’ve got. Loans can go as up as $2 million and nonprofit organizations could be charged an interest rate of 2.75 percent while small businesses will be entitled to a 4 percent interest rate.
It is also important to note that the administration will decide the amount that will be awarded in regards to the condition of the business applying for it. Sadly, ranchers and farmers will not be eligible for administrative business loans.
The United States Business Administration also noted that the loans were to be used to settle the debts, foot the bills that may have resulted from the untimely disaster. They also mentioned and clarified that these loans weren’t to be used to replace sales or profit. This was a clarity made to make things right before the loans were issued. It is also essential to note that the deadline for the loan applications is 29th April 2020. You’re therefore required to apply for the loan before the deadline to avoid any inconveniences.
AUTHOR BIO: As the FAM account executive, Michael Hollis has funded millions by using merchant loan solutions. His experience and extensive knowledge of the industry has made him finance expert at First American Merchant.