Parchment homeowners, renters, and business owners who lost property in the March 6 tornadoes have until June 29 to apply for low-interest federal disaster loans from the U.S. Small Business Administration.

Calhoun County is among eight Michigan counties covered by the SBA disaster declaration. The filing window is closing soon, and residents who have not yet applied may be eligible for up to $500,000 for home repairs or $2 million for business damage.

What Parchment Residents Can Borrow

According to the SBA, eligible applicants in Calhoun County can access two types of loans:

  • Homeowners may borrow up to $500,000 to repair or replace a primary residence
  • Homeowners and renters may borrow up to $100,000 for personal property including clothing, furniture, cars, and appliances
  • Businesses and private nonprofits may borrow up to $2 million for physical damage to real estate, machinery, equipment, inventory, and other business assets

Applicants can also qualify for a loan increase of up to 20% of verified physical damage for mitigation work. Eligible upgrades include stronger building features for high winds, wind-rated garage doors, and the installation of safe rooms or storm shelters.

"One distinct advantage of SBA's disaster loan program is the opportunity to fund upgrades reducing the risk of future storm damage," said Chris Stallings, associate administrator of the Office of Disaster Recovery and Resilience at the SBA. "I encourage businesses and homeowners to work with contractors and mitigation professionals to improve their storm readiness while taking advantage of SBA's physical damage loans."

Interest Rates and Repayment Terms

The SBA offers some of the lowest interest rates available for disaster recovery:

  • 4% for small businesses
  • 3.625% for private nonprofits
  • 2.875% for homeowners and renters

Loan terms can stretch up to 30 years. Interest does not begin to accrue and payments are not due until 12 months after the first loan disbursement, according to the SBA.

How to Apply

Applications are available online at sba.gov/disaster. Applicants can also contact the SBA Customer Service Center at (800) 659-2955 or by email at disastercustomerservice@sba.gov.

The SBA sets loan amounts and terms based on each applicant's financial condition, according to the agency.

The disaster declaration covers Berrien, Branch, Calhoun, Cass, Hillsdale, Kalamazoo, St. Joseph, and Van Buren counties in Michigan, along with four Indiana counties: Elkhart, LaGrange, St. Joseph, and Steuben.