Winter businesses are feeling the pain from the abnormally warm season
MINNEAPOLIS — Gov. Tim Walz is encouraging Minnesota businesses impacted by the lack of snow and ice this winter to apply for federal disaster loans.
In a news release this week, the Governor cited the record shatteringly warm winter and lack of precipitation as fitting the criteria to apply for a Small Business Administration Economic Injury Disaster Loan.
"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," said Governor Walz. "I encourage all impacted business owners to apply for assistance as soon as possible."
According to the Governor's office, 81 counties in Minnesota are currently covered by U.S. Department of Agriculture disaster declarations for drought.
If approved, businesses that apply for an EIDL are eligible to borrow up to $2 million to cover their losses. The loans have no interest on the first year and maximum interest rate of four percent for the remaining repayment period.
The news was welcomed by Minnesota Ice CEO Robbie Harrell.
"Back during COVID when the PPP money came out, that is honestly what helped keep our business alive during those times," he said, "So when the government can step in, in a way, and genuinely help the people that need it, it's very beneficial."
Harrell says his company has endured steep losses as a result of having to cancel the Minnesota Ice Festival back in December just weeks before it was set to begin, with ice construction already underway.
"We made it all the way through phase two. And you know what, it was raining on Christmas, because we, unfortunately, had to pull the plug," he said. "High seven figures were lost in revenue due to, not being able to host the festival. We had over 150 seasonal jobs that were lost."
For more information on the loan program, click here