Businesses Encouraged To Apply for Disaster Relief Due To Lack of Snow
After the warmest Minnesota winter on record with the second lowest snowfall, federal disaster relief loans are available for businesses and nonprofits that rely on winter weather for their income.
Minnesota Gov. Tim Walz encouraged small businesses to apply for the funds on Monday, March 11.
“This is very similar to whether we have a drought with farming, whether we flooding, whether we have a tornado, it’s the weather’s economic impact,” Walz said. “This isn’t a dog-eat-dog world where the invisible hand of commerce just wipes people away or whatever. That has catastrophic effects. And there’s things that we can do to lessen that impact.”
Businesses Struggle With Warm Winter
At a press conference, the Loppet Foundation said it’s struggled with the lack of snowfall.
“We had 53 percent fewer participants in our ski lessons, in our school programs, in all of the areas where we touch Minnesotans and get them outdoors and connected to nature and winter,” said Claire Wilson, executive director of the Loppet Foundation. “All of this resulted in a close to a million-dollar gap for an organization of our size.”
Just weeks ago, the foundation hosted the Cross County Skiing World Cup at Theodore Wirth Park. Now, the bulk of the snow from the event has melted away.
Meanwhile, Scott’s Lawn Care, which offers snow plowing in the winter months, had to lay off nearly half its staff.
Owner Scott Hartmann said that the company responded to more than 20 major snow events last year.
This winter, it has responded to one major snow event.
Hartmann said Scott’s Lawn Care has seen a 40 percent drop in revenue this winter.
Minnesota Gov. Tim Walz speaks at a press conference on Monday, March 11. After the warmest Minnesota winter on record with the second lowest snowfall, federal disaster relief loans are available for Minnesota businesses — such as snow removal companies — that rely on winter weather for their income.
Loans from Small Business Association
Walz said the federal Small Business Association is offering low-interest loans for businesses and nonprofits.
These Economic Injury Disaster Loans are available because of 81 of Minnesota’s 87 counties are considered in drought conditions by the U.S. Department of Agriculture.
The loans can total up to $2 million.
They’re available at 4 percent interest for small businesses and 2.375 percent for nonprofits. Borrowers pay no interest in the first year of the loan term.
It’s the first time the federal government is making these loans available due to winter drought conditions.
“I think what we’re seeing now is the connection to climate change… the peripheral businesses that are hit by this,” Walz said. “This is clearly because we didn’t have moisture, but we didn’t have that moisture in the form or snow and outdoor activities and that’s causing it. So I’m grateful for the administration. When we spoke with them, we tried to ask [the Small Business Association] to get creative on this — they did it.”
Hartmann said the funds from these loans may help him bring back employees that were laid off earlier this year.
To apply for a disaster loan, visit the Small Business Association’s website.
