Federal agency offers loans to Michigan after Biden denies major disaster declaration

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The Small Business Administration will offer low-interest loans to Michigan residents and businesses affected by a deadly tornado in Gaylord on May 20 after President Joe Biden denied the state’s request for a major disaster declaration.

Gov. Gretchen Whitmer (D) announced Wednesday that the SBA had declared a disaster for Otsego County, opening up eligibility for the loans, following the EF3 tornado that killed two people, injured dozens of others, and destroyed businesses and homes in its path.

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“It is clear this tornado had devastating impacts in Otsego County. These loans will allow people and businesses to begin rebuilding and will ensure the community continues to move forward,” Whitmer said in a statement obtained by 9&10 News.

On July 2, the Federal Emergency Management Agency denied a major disaster declaration after Whitmer had appealed to Biden for one on June 8. Major disaster declarations are under the president’s discretion. It is not immediately clear why the declaration was denied.

“A presidential declaration would open up additional federal resources necessary to help the Gaylord community recover. Tough times call for tough people, and I know that the Michiganders in Gaylord will get through this. Let’s keep working together to support all of the ongoing efforts to recover and rebuild,” Whitmer said in a June 8 statement.

Under the SBA disaster assistance program, homeowners, renters, businesses, and nonprofit organizations will be able to apply for low-interest loans to repair or replace personal property, assets, machinery, and more that was damaged or destroyed by the tornado.

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The tornado first touched down in Elmira and strengthened as it crossed into Otsego County, reaching maximum winds of 150 mph in Gaylord and traveling 17 miles, according to the National Weather Service.

The Washington Examiner reached out to FEMA for comment.

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