REGIONAL— Small businesses or agricultural operations in northeastern Minnesota may be eligible for federal low interest loans to help them recover from ongoing drought conditions, including this winter’s lack of snow.
Gov. Tim Walz announced this past week that the state has unlocked federal funding for small businesses that suffered losses due to the lack of snow and he urged qualifying businesses to apply soon.
“From skiing and snowshoeing to winter festivals, snowy winters are part of our way of life in Minnesota,” said Walz. “The low precipitation we’ve experienced this winter has had a real economic impact on small businesses that rely on snow and winter tourism to grow and survive. I encourage all impacted business owners to apply for assistance as soon as possible.”
From December to February, Minnesota experienced the warmest meteorological winter on record, and it was among the least snowy in many locations as well. Through the end of February, Duluth had recorded only 15.7” snow this winter, with an average snow depth of 1.8.” This lack of precipitation has exacerbated an ongoing drought and the resulting impact to businesses makes them eligible for these federal loans.
Impacted businesses in counties with a drought declaration can apply for the Economic Injury Disaster Loans (EIDL) through the Small Business Administration (SBA). The loans are designed to help businesses get through emergency situations that have impacted their economic well-being. Under the EIDL program, businesses can borrow up to $2 million to cover their actual losses. Businesses pay no interest on the loan for the first year and a maximum rate of four percent for the rest of the loan period. To take advantage of the program, businesses must apply by the application deadlines for any of the three declarations that include St. Louis County. Those deadlines are April 4, April 15, or May 13, 2024.
Business owners can learn more about eligibility and find an application at the SBA’s disaster assistance page.
Businesses impacted by a lack of precipitation will enter their county’s name and see a list of all open disasters for their county. They should pick one where the incident includes “drought.”
Submit applications and find additional disaster assistance information at https://lending.sba.gov. Applicants may also contact Minnesota’s Small Business Development Centers and SBA’s Customer Service Center at disastercustomerservice@sba.gov. You can also call 800-659-2955 from 7:00 a.m. – 7:00 p.m. Monday through Friday.