Businesses affected by flood damage earlier this summer have encountered some relief, with President Joe Biden recently issuing an updated major disaster declaration.
This declaration will “unlock some additional federal resources” for businesses, said Andy Wilke, executive vice president of Greater Mankato Growth.
“For eligible businesses, a loan of up to $2 million will cover losses not covered by insurance,” he said. “Loan funds can be used by businesses for repair and replacement of property, machinery, equipment, fixtures, inventory and leasehold improvements.”
Loan applications are due Sept. 30 and can be filed at lending.sba.gov. Affected counties are Blue Earth, Cook, Cottonwood, Faribault, Freeborn, Goodhue, Itasca, Jackson, Lake, Le Sueur, Mower, Nicollet, Nobles, Rice, Rock, St. Louis, Steele, Waseca and Watonwan.
One of the key resources made available is through the Small Business Administration, Wilke said, which provides low-interest loans for businesses for physical damages and economic injury.
And while loans are the only safeguards currently available, Wilke hopes that changes in time.
“At this point, yes, it is just loans,” he said. “We are hoping that this major disaster declaration will unlock some additional resources that may include grants or other assistance. But that’s undetermined at this point.”
During a July 18 listening session, Greater Mankato Growth executives heard from more than a dozen Mankato area business owners that they are struggling.
“The physical damage from just those businesses on the call exceeded $1.2 million,” Wilke said. “We have heard much of the same themes from individual businesses we are meeting with — the physical damage exceeds what insurance policies cover and do not include any economic injury consideration.”
The latest federal disaster assistance gives businesses a way to recover from physical damage, and also unlocks an opportunity for them to preserve their cash flow. Businesses that were closed for days or weeks and had lost income from being closed could be helped, Wilke said.
“It’s important because it was a major disaster in our area and it is good the federal government is stepping up to help businesses,” he said. “Sometimes that process can be slow but we are thankful there continues to be movement and support for the business community.”
Greater Mankato Growth will host a webinar to help educate businesses on what disaster assistance resources are available. A date and time for that event isn’t yet available.