Business owners can qualify for low-interest loans of up to $2 million through the Small Business Administration.
MINNEAPOLIS — When your business depends on the weather, you plan for good years and bad years, but it's hard to plan for a really bad year.
Loppet Foundation Executive Director Claire Wilson says this year has been one of those years.
“We didn't plan for a snow drought on top of a year without snow,” Wilson said.
Despite hosting the World Cup this year, Wilson reported a $1 million loss in revenue this winter.
“We struggled as an organization this winter,” Wilson said. “Participation in ski lessons and school programs has decreased by 53%.”
The Loppet Foundation is just one of countless nonprofits and small businesses affected by this year's warm winter. Many of these businesses are now eligible for new loan programs offered by the Small Business Administration (SBA).
“This is very similar to how we have droughts in agriculture, or floods, or tornadoes, the impact of weather on the economy,” Gov. Tim Walz said.
Walz and other leaders held a press event Monday at Theodore Wirth Park in Minneapolis to raise awareness of these new SBA loans.
The loan is available because 81 Minnesota counties remain under a federal drought declaration. Seasonal business owners who reside in these 81 counties may be eligible for low-interest loans through this program.
“The small business interest rate on these loans is 4% and the nonprofit interest rate is 2.375%,” said SBA District Director Brian McDonald.
Under the Economic Injury Disaster Loan (EIDL), business owners can borrow up to $2 million.
According to McDonald's, application deadlines vary depending on the business owner's residence. He said Minnesota has 13 different deadlines from the end of March to June.
“We encourage you to apply as soon as possible,” he said.
In addition to the Loppet Foundation, Scott Hartman of Scotts Lawn Care said they are also considering financing through the SBA.
“Our revenue has fallen by 40% and we have sadly had to lay off many of our staff.”
Hartman said the company started the winter with 37 employees, but had to lay off 16 employees due to the lack of snow.
Explore Minnesota hears similar stories from business owners in the travel and tourism industry.
Executive Director Lauren Bennett McGinty said the agency is currently completing a statewide survey of business owners to fully understand the impact of this year's warm winter.
Mr McGinty said the survey results are likely to be released later this week, but he has heard initial reports from business owners that revenue has fallen between 15% and 75% this winter.
“Ironically this was the year we put 24% of our marketing dollars into winter marketing, but unfortunately we didn't have a winter to actually get it to market,” McGuinty said.
For more information about the SBA loan program, eligibility requirements, and application deadlines, visit the Small Business Administration website.
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