Washington [10/16/23] — Today, U.S. Senators Amy Klobuchar and Tina Smith (both D-Minn.) announced federal loans designed to help small businesses, agricultural cooperatives, and nonprofit organizations in Minnesota recoup losses as a result of this summer’s drought.
These federal Economic Injury Disaster Loans (EIDLs) are available in Murray and Nobles counties and the contiguous counties of Cottonwood, Jackson, Lyon, Pipestone, Redwood, and Rock Minnesota.
“This summer’s drought affected everyone from farmers and ranchers to local business owners,” said Klobuchar. “These federal loans will provide relief and ensure farms and businesses get the support they need as they continue to recover. I encourage everyone eligible to get in touch with the Small Business Administration to learn more and apply.”
“Climate-fueled extreme weather events, like the drought we experienced in Minnesota this summer, are becoming more and more common. We need to be doing everything we can to support those impacted and limit the economic toll they take,” said Sen. Smith. “These federal loans will help sustain local businesses and farms as they deal with the fallout from the drought. I encourage eligible businesses, farms and nonprofits to contact the Small Business Administration and apply before the May 29th deadline.”
The Economic Injury Disaster Loan program is available to eligible farm-related and nonfarm-related entities that suffered financial losses as a direct result of this disaster. EIDLs are available through the Small Business Administration (SBA), and can be used to pay fixed debts, payroll, and other bills that could have been paid if not for the drought conditions in Minnesota this summer.
The loans can be up to $2 million with interest rates of 4% for small businesses and 2.375% for private nonprofit organizations, with terms up to 30 years. The SBA sets loan amounts and terms based on each applicant’s financial condition.
Applicants may apply online using the Electronic Loan Application (ELA) via the SBA’s secure website at DisasterLoanAssistance.sba.gov/ela/s/ and should apply under SBA declaration #18228. The deadline for loan applications is May 29, 2024.