Federal funding is available to small businesses impacted by the lack of snowfall this winter in Blue Earth and Nicollet Counties.

In short, an Economic Injury Disaster Loan is available for businesses that are facing working capital needs due to the ongoing drought. Impacted businesses in Blue Earth and Nicollet Counties can apply for the Economic Injury Disaster Loans through the Small Business Administration. 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, which includes working capital and normal expenses, such as the continuation of health care benefits, rent, utilities, and fixed debt payments. Businesses pay no interest on the loan for the first year and a maximum rate of 4% for the rest of the loan period. In order to take advantage of the program, businesses in Blue Earth and Nicollet Counties must apply by the application deadline of May 28.

How to Apply

Applicants who do not have a SBA Loan Portal account should begin by creating an account at lending.sba.gov. If you do not receive email communication when creating an account, be sure to check your spam folder. Anyone that has difficulties with creating an account can reach out to MySBA Loan Customer Service (Phone: 1-833-572-0502; Email: [email protected]) between 8 a.m. and 8 p.m. Monday through Friday.

Applicants can locate a disaster declaration by either selecting “View All Disaster Declarations” or selecting their state and county. Select the property type; if business if selected an additional screen will appear to determine the type of loss (physical damage, economic injury, not sure). Non-farm related businesses should still select “yes” when asked if you would like to view the Secretary of Agriculture Declarations that cover loss of income related to farms and ranches impacted by a natural disaster.

Once you have your selected disaster for your county, you can start an application by clicking “Apply for Assistance for this Disaster.”

Economic Injury Disaster Loans (EIDLs)

• Working capital loans to help small businesses, small agricultural cooperatives, small businesses engaged in aquaculture and most private non-profit organizations of all sizes
• Maximum loan amount is $2 million
• Help meet working capital needs caused by the declared disaster
  • Help pay financial obligations and operating expenses which could have been paid had the disaster not occurred, i.e.,
  • Fixed debt payments, payroll, accounts payable, etc.
  • Extraordinary expenses caused by the disaster
• EIDLs do not replace lost revenue, lost profits or fund expansion

Loan Terms

• Up to 30 years, based on ability to repay
• Low-Fixed interest rate 4%
• No monthly payments or interest for the First Year

Documents Required for a Business Loan

• Cell phone number and contact information for all applicants
• Social Security Numbers and Employer ID Numbers (EIN) for all owners
• Financial Information: income, account balances, monthly expenses, etc.
• Complete copy of the most recent Federal Income Tax Return
• Information about all insurance policies for your business
• Information about all general partners or managing members of your business
• Information about any persons or entities who own 20% or more of the business, and
• The designated disaster number for your event you experienced. You can search for this number here: Search Declarations (sba.gov)

Notes About SBA Disaster Loans

• SBA’s Economic Injury Disaster Loan (EIDLs) funds come directly from the U.S. Treasury
• Applicants do not go through a bank to apply. Instead apply directly to SBA’s Disaster Assistance Program at: sba.gov/Disaster
• There is no cost to apply
• There is no obligation to take the loan if offered
• Applicants can have an existing SBA Disaster Loan and still qualify for a loan for this disaster, but the loans cannot be consolidated.

Requirements for Loan Approvals

• Eligibility
  • Damaged property must be in a declared area
• Credit History
  • Applicants must have a credit history acceptable to SBA
• Repayment
  • Applicants must show the ability to repay all loans

Collateral Requirements

• Economic injury disaster loans over $25,000 require collateral.
  • SBA takes real estate as collateral when it is available.
  • SBA will not decline a loan for lack of collateral but will require the borrower to pledge collateral that is available.

Resources to Support Applications

The following additional resources are provided by the SBA:

• SBA’s Customer Service Center (Phone: 1-800-659-2955; Email: [email protected]) is available from 7 a.m. – 7 p.m. Monday through Friday US Central time.
• For people who are deaf, hard of hearing, or have a speech disability, please dial 7-1-1 to access telecommunications relay services.
• The Minneapolis SBA District Office
• The local Small Business Development Center

Details about the Economic Injury Disaster Loans

Federal funding is available to small businesses impacted by the lack of snowfall this winter in Blue Earth and Nicollet Counties.

Amid the warmest winter on record, federal Economic Injury Disaster Loans are available because of ongoing federal drought declarations affecting 81 Minnesota counties.

“From skiing and snowshoeing to winter festivals, snowy winters are part of our way of life in Minnesota. 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,” Governor Tim Walz said in a news release. “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. Through February 29th, there has only been 9.4” of snow in Greater Mankato, the second-lowest season total on record. The average annual snowfall in the region is around 40”, with 74.2” of snow accumulating last winter.

The lack of precipitation in the area has exacerbated an ongoing drought that has been declared by the Secretary of Agriculture. If the Secretary of Agriculture designates an area an agricultural disaster, the SBA automatically activates its Economic Injury Disaster Loan (EIDL) program for farm related and non-farm related businesses. Loans are made available to eligible small businesses, small agricultural cooperatives and private nonprofit organizations that have suffered substantial economic injury as a result of the declared disaster.

Impacted businesses in Blue Earth and Nicollet Counties can apply for the Economic Injury Disaster Loans through the Small Business Administration. 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, which includes working capital and normal expenses, such as the continuation of health care benefits, rent, utilities, and fixed debt payments. Businesses pay no interest on the loan for the first year and a maximum rate of 4% for the rest of the loan period. In order to take advantage of the program, businesses in Blue Earth and Nicollet Counties must apply by the application deadline of May 28.

View the PDF version here.