Gov. Tony Evers and U.S. Sen. Tammy Baldwin (D-Wisconsin) announced that many Wisconsin businesses may be eligible for a federal disaster loan program if they have suffered losses due to this year’s unusually mild winter, which lacked Wisconsin’s typical snowfall in many areas of the state.
Evers and Baldwin have been advocating for the U.S. Small Business Administration (SBA) to confirm this disaster coverage extends to businesses impacted by Wisconsin’s extraordinary winter conditions. SBA has since confirmed it will consider business loss from recent low snowfalls over the winter months to be related to the drought and eligible for assistance.
The lack of snow has impacted travel and recreation businesses that depend on it for activities such as downhill and cross-country skiing, snowshoeing and snowmobiling.
“The lack of snow we’ve experienced so far this winter has had serious economic impacts on folks and businesses, especially in our northern counties, who rely on snow and winter weather to attract customers and be successful,” said Evers. “I encourage all eligible businesses to apply for these loans as soon as possible, and in the meantime, I encourage Wisconsinites to plan a trip, visit local businesses and find other exciting ways to enjoy winter in Wisconsin in our beautiful northern and central communities.”
Many counties in the state are already covered by a pre-existing disaster designation for drought from the U.S. Department of Agriculture. This designation allows businesses in counties identified as drought disaster areas to be eligible for emergency loans to offset their business losses in those counties if their business loss is related to the drought.
The National Weather Service reports that snowfall statewide has been 20-30 inches below normal this winter. In the Lake Superior snowbelt, generally across Ashland, Iron, and Vilas counties, snowfall was 40-70 inches below normal.
Impacted businesses in counties with a drought declaration can apply for the U.S. SBA Economic Impact Disaster Loans (EIDL). Under the EIDL program, businesses can borrow up to $2 million to cover their actual losses. Businesses pay no interest on the loan for the first year and a maximum rate of 4% for the rest of the loan period.
To take advantage of the program, businesses must apply by the application deadline for their county.
May 13 is the application deadline for Ashland, Langlade, Lincoln, Marathon, Menominee, Oconto, Shawano and Taylor counties.
Businesses may submit applications and find additional disaster assistance information at https://lending.sba.gov. Applicants may also call SBA’s Customer Service Center at 800-659-2955 or email disastercustomerservice@sba.gov for more information on SBA disaster assistance.
Applicants may also contact the Wisconsin Economic Development Corporation with their EIDL-related questions at EIDLInquiries@wedc.org
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