Comstock Township businesses hit by the March 6 tornado outbreak still have time to apply for federal disaster loans. The window closes in less than two months for physical damage claims and runs until January for economic injury loans.

An SBA representative told the Comstock Township board that Kalamazoo County businesses qualify for Economic Injury Disaster Loans of up to $2 million. The loans carry interest rates starting at 4% for businesses and 3.625% for nonprofits. Borrowers make no payments during the first year.

Businesses do not need to have been in the direct path of the tornado to qualify. According to the SBA presentation at the township board meeting, companies that experienced indirect economic losses are eligible. Those losses include reduced revenue, payroll gaps and supply chain disruptions.

Who qualifies

The SBA disaster declaration covers three primary counties: Branch, Cass and St. Joseph. Kalamazoo County is listed as a bordering county eligible for economic injury disaster loans.

According to the state emergency declaration, four tornadoes struck southwest Michigan on March 6. An EF3 tornado hit the Union Lake area with estimated winds of at least 160 miles per hour. The outbreak killed four people and caused catastrophic damage across the region.

"Following deadly tornadoes in Southwestern Michigan, communities are working hard to rebuild," said Governor Gretchen Whitmer. "This SBA declaration will help us connect communities and small businesses with the resources they need to get back on their feet."

Two types of loans available

Businesses can apply for two categories of SBA disaster loans:

  • Business Physical Disaster Loans — For repairing or replacing disaster-damaged property including real estate, inventories, machinery and equipment. Businesses of any size qualify. Private nonprofit organizations are also eligible.
  • Economic Injury Disaster Loans — Working capital loans to help small businesses and nonprofits meet ordinary financial obligations disrupted by the disaster.

Where and when to apply

The physical disaster loan deadline is June 28. The economic injury loan application window remains open through January 2027.

Applicants can apply online through the MySBA Loan Portal or in person at the SBA's Three Rivers outreach center:

  • St. Joseph County Outreach Center

* 52 N. Main Street, Three Rivers, MI 49093

* Monday through Friday: 9:00 a.m. to 5:00 p.m.

* Saturday: 10:00 a.m. to 2:00 p.m.

The Three Rivers center closes at the end of May, according to the SBA. Applicants who need in-person assistance should act quickly.

Applications are also available by mail. For more information, the SBA can be reached at 1-800-659-2955.

No cost to apply

There is no cost to submit an application. Borrowers face no penalty for declining the loan if it does not meet their needs.

The SBA tailors repayment terms to each borrower's financial capability, according to the disaster declaration announced by Governor Whitmer on April 30.