The Small Business Administration is offering disaster loans of up to $2 million to businesses and residents in the Twin Cities who incurred financial damage from the protests and riots in late May and early June.
The move comes after the Federal Emergency Management Agency denied a request from Gov. Tim Walz for federal disaster aid to reimburse local governments as they begin to clear away rubble and rebuild structures.
Meanwhile, state and local officials in Minneapolis and St. Paul have been slow to pull together financial assistance, in part because they’re waiting to see what each other will do.
Nearly 1,500 Twin Cities businesses were damaged by vandalism, fire and looting that happened after protests over the police killing of George Floyd. Estimates of damage exceed $500 million.
The SBA said it will offer low-interest loans repayable over as long as 30 years for working capital and to repair damage that happened from May 27 to June 8. The agency will accept loan applications until early October.
“Businesses and private nonprofit organizations may borrow up to $2 million to repair or replace disaster damaged or destroyed real estate, machinery and equipment, inventory, and other business assets,” Brian McDonald, the SBA’s Minnesota District Director, said in a statement.
For small businesses and small agricultural cooperatives, and most private nonprofits, SBA offers Economic Injury Disaster Loans to help meet working capital needs caused by the disaster. They are available regardless of whether the business suffered any physical property damage. Homeowners and renters who incurred related damage are eligible for loans of up to $40,000.
Interest rates are as low as 3% for businesses, 2.75% for nonprofit organizations and 1.25% for homeowners and renters with terms up to 30 years. Loan amount and terms are based on each applicant’s financial condition.
The SBA made the loans available in response to a request from Walz for a disaster declaration by the SBA. The declaration covers Hennepin County and the adjacent counties of Anoka, Carver, Dakota, Ramsey, Scott, Sherburne and Wright in Minnesota.
Businesses and individuals may also obtain information and loan applications on the SBA’s website, by calling the SBA’s customer service center at 1-800-659-2955 or by sending e-mail to disastercustomerservice@sba.gov.