Peters, Stabenow, Kildee Urge Snyder to Request Small Business Administration Assistance for Flint

Statement

U.S. Senator Gary Peters (D-MI), U.S. Senator Debbie Stabenow (D-MI) and Congressman Dan Kildee (D-MI) today sent a letter to Governor Snyder urging him to engage with the Small Business Administration (SBA) and request SBA disaster loans in response to the Flint water crisis. Depending on which type of SBA disaster declaration is requested by the Governor and issued by the President or SBA Administrator, eligible businesses, homeowners, renters and non-profit organizations impacted by the Flint water crisis can apply for low interest, long term disaster loans.

The letter reads in part: "The full impact of the unacceptable, man-made crisis in Flint will not be knowable in the near term. What we do know is that the crisis is affecting Flint's economy. It is critical that you prioritize this request for a disaster declaration so that all of our constituents can assess whether a disaster loan is appropriate for their home, business or organization and submit their applications. Disaster Loans are not silver bullets that will cure all of the economic ills impacting Flint, but they can be helpful components of a broader recovery strategy which will require sustained commitment from you and your Administration."

The Governor can request either a SBA physical or economic injury disaster declaration. Under a physical disaster, homeowners, renters, businesses and non-profits in primary and contiguous counties could apply for disaster loan assistance. Under an economic injury disaster loan, eligible businesses would be able to apply for up to $2 million in long term, low interest loans, depending on their circumstances. These loan proceeds can then be directed to working capital needs like making payroll or replacing inventories.

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