President Biden declared that a major disaster exists in Wayne County, Michigan on July 15, 2021. The declaration comes in the wake of late June's devastating flooding that damaged more than 19,000 homes in Wayne County.
The declaration clears the way for affected residents to seek federal disaster assistance to recover and rebuild. The two sources of federal assistance for individuals/households are FEMA’s Individuals and Households Program (IHP) and the U.S. Small Business Administration Disaster Assistance Loan Program. Non-Profits and Businesses can seek assistance from the U.S. Small Business Association only. Please view the information regarding both sources of funding below.
Public service Announcement regarding federal assistance FROM FEMA AND tHE U.S. SMALL BUSINESS ADMINISTRATION
INDIVIDUAL AND HOUSEHOLD dISASTER ASSISTANCE (fEMA)
FEMA’s Individuals and Households Program (IHP) provides financial and direct services to eligible individuals and households affected by a disaster, who have uninsured or under-insured necessary expenses and serious needs. IHP assistance is not a substitute for insurance and cannot compensate for all losses caused by a disaster. The assistance is intended to meet your basic needs and supplement disaster recovery efforts.
To begin the application process please visit this webpage located on disasterassistance.gov and click the button labeled "Apply Online". Please read the instructions carefully before you start the application.
For in-person assistance you can visit the FEMA-State Documentation Drop-off Center Opens in Grosse Pointe at the Grosse Pointe Public Safety Building located at 17320 Mack Avenue.
In the event that your application is denied by FEMA you have the right to appeal. Appealing a denial is common. To learn more about the the appeals process view this series of videos on FEMA's YouTube Channel.
DISASTER ASSISTANCE LOAN (SMALL BUSINESS ADMINISTRATION )
How To Apply for a Disaster Loan (VIDEO)
In Wayne and Washtenaw, all disaster loans are available for businesses of all sizes, non-profits, faith-based organizations, homeowners and renters.
What Types of Disaster Loans are Available?
- Business Physical Disaster Loans – Loans to businesses to repair or replace disaster-damaged property owned by the business, including real estate, inventories, supplies, machinery and equipment. Businesses of any size are eligible. Private, non-profit organizations such as charities, churches, private universities, etc., are also eligible. The law limits business loans to $2,000,000.
- Economic Injury Disaster Loans (EIDL) – Working capital loans to help small businesses, small agricultural cooperatives, small businesses engaged in aquaculture, and most private, non-profit organizations of all sizes meet their ordinary and necessary financial obligations that cannot be met as a direct result of the disaster. These loans are intended to assist through the disaster recovery period.
- Home Disaster Loans – Loans to homeowners or renters to repair or replace disaster-damaged real estate and personal property, including automobiles.
- Credit History – Applicants must have a credit history acceptable to SBA.
- Repayment – Applicants must show the ability to repay all loans.
- Collateral – Collateral is required for physical loss loans over $25,000 and all EIDL loans over $25,000. SBA takes real estate as collateral when it is available. SBA will not decline a loan for lack of collateral but requires you to pledge what is available.
Interest rates are as low as 2.88% for businesses, 2% for nonprofit organizations, and 1.625% for homeowners and renters, with terms up to 30 years. Loan amounts and terms are set by the SBA and are based on each applicant’s financial condition.
How to apply:
To be considered for all forms of disaster assistance, applicants should register online at DisasterAssistance.gov or download the FEMA mobile app. If online or mobile access is unavailable, applicants should call the FEMA toll-free helpline at 800-621-3362. Those who use 711-Relay or Video Relay Services should call 800-621-3362.
For in-person assistance with an SBA disaster loan application, survivors can go to ANY FEMA Disaster Recovery Center where there will be FEMA and SBA personnel to assist them. Find a center using this locator:
Anyone can go to SBA’s Business Recovery Center, which is open 8 a.m. to 5 p.m. weekdays at the Caroline Kennedy Library, 24590 George St., Dearborn Heights, MI 48127. (The center is closed Saturday and Sunday.) At this center, there are JUST SBA PERSONNEL (no FEMA at this center).
Applicants may apply online using the Electronic Loan Application (ELA) via SBA’s secure website at https://disasterloanassistance.sba.gov/ela/s.
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 DisasterCustomerService@sba.gov.
Loan applications can also be downloaded at sba.gov/disaster.
What is the deadline?
The filing deadline to return applications for physical property damage is Sept. 13, 2021. The deadline to return economic injury applications is April 15, 2022.
- Applying for a disaster loan is part of the FEMA process
- Applying for a disaster loan is FREE and there is NO PRESSURE or obligation to accept a loan
- If FEMA says, “apply to SBA,” and a survivor doesn’t; they won’t continue to move through the FEMA process
- If SBA denies a person’s loan application, we re-route them back to FEMA for potential additional grant consideration
- Disaster loans are for one’s primary residence
- Driveways, garages, fencing, decks, and sheds are generally all eligible under the disaster loan program
- Finished and unfinished basements, and everything in them, are generally eligible under the disaster loan program
- Cars damaged in the disaster are eligible for a disaster loan, including their contents, such as tools or infant car seats
- Whatever disaster-damaged personal belongings renters can take with them are eligible for a disaster loan
- SBA calculates loan amounts based on replacement value, not depreciated value
- Mitigation funding can be used for improvements such as back-flow valves on your sewage line, elevating the mechanicals in your basement, etc.
- Terms are up to 30 years to make payments affordable, but there is no prepayment penalty for those who wish to pay off their loans early
- The loans are direct from the U.S. Treasury, not a bank. The terms and interest rate don’t change.
- The first payment is not due until 18 months from the date of the promissory note; however, interest accrues during that period
- No collateral is required for loans of $25,000 or less