Small Business Administration Loans Now Available for Flood Victims

By KBJR News 1

Flooding in Fond du Lac, just south of Duluth

August 17, 2012 Updated Aug 17, 2012 at 2:41 PM CDT

St. Paul, MN (Northland's NewsCenter) --- Northern Minnesota counties who were devastated by June's flooding have secured a disaster declaration from the U.S. Small Business Administration (SBA).

Governor Mark Dayton sent a request for disaster declaration to the SBA on August 15th so homeowners and businesses could apply for an SBA loan to help in the flood relief efforts.

A disaster declaration has been declared for Carlton, Pine and St. Louis counties and the Fond du Lac Band of Lake Superior Chippewa.

The declaration makes available low-interest loans to homeowners, businesses, renters and not-for-profit organizations.

Residents in surrounding counties in Aitkin, Chisago, Isanti, Kanabec, Koochiching and Lake can also apply for the loans.

Residents affected by this same storm system in the Wisconsin counties of Burnett and Douglas may also apply.

Governor Mark Dayton requested an SBA disaster declaration after FEMA denied Minnesota’s appeal for individual assistance.

SBA loans up to $200,000 are available to homeowners to repair or replace damaged or destroyed real estate.

Homeowners and renters are eligible for loans up to $40,000 to repair or replace damaged or destroyed personal property.

Businesses and not-for-profit organizations may apply to borrow up to $2 million to repair or replace damaged or destroyed real estate, equipment, inventory and other business assets.

Disaster Loan Outreach Centers will be set up in several communities in the Northland. They will be staffed by SBA, local and state agencies including experts from the Minnesota Housing Finance Agency which, if funded by the legislature, will be able to provide its Quick Start program.

Quick start loans are forgivable no-interest loans as long as certain conditions are met. Residents seeking a Quick Start loan must first apply for a SBA loan.

The Disaster Loan Outreach Centers will be open 9 a.m. to 5:30 p.m. weekdays and 10 a.m. to 2 p.m. Saturday. The locations will be:
• St. Louis County
Tuesday, Aug. 21 - Wednesday, Aug. 29 (closed Sunday)
Duluth Entertainment and Convention Center (DECC)
350 Harbor Drive
Duluth, Minnesota 55802

• Carlton County
Tuesday, Aug. 21 - Friday, Aug. 24 and Monday Aug. 27 - Wednesday, August 29
Barnum Community Center
3753 Front Street
Barnum, Minnesota 55707

Saturday, Aug. 25
Barnum High School
3675 County Road 140
Barnum, Minnesota 55707

• Pine County
Tuesday, Aug. 21 - Thursday, Aug. 23
Rutledge Community Center
7369 County Highway 61
Rutledge, Minnesota 55795

The Department of Public Safety Division of Homeland Security and Emergency Management (HSEM) will coordinate the Disaster Loan Centers along with the SBA.

If an applicant is turned down for a SBA loan they then become eligible for state assistance programs and private donation money.

Posted to the web by Krista Burns