Minnesotans impacted by drought can get federal disaster loans

(Photo by Justin Sullivan/Getty Images)

Minnesota Sens. Amy Klobuchar and Tina Smith announced Monday federal loans to help businesses and farms affected by this summer’s drought.

These federal Economic Injury Disaster Loans (EIDLs) are available in Murray, Nobles, Cottonwood, Jackson, Lyon, Pipestone, Redwood and Rock counties in Minnesota. 

"This summer’s drought affected everyone from farmers and ranchers to local business owners," said Klobuchar. "These federal loans will provide relief and ensure farms and businesses get the support they need as they continue to recover. I encourage everyone eligible to get in touch with the Small Business Administration to learn more and apply."

The loan program is available to eligible farm-related and nonfarm-related entities that suffered financial losses as a result of the drought, according to the release. 

The EIDLs are available through the Small Business Administration and can be used to pay fixed debts, payroll and other bills. The loans can be up to $2 million with interest rates of 4% for small businesses and 2.375% for private nonprofits. Loan amounts are based on each applicant’s financial condition. 

"Climate-fueled extreme weather events, like the drought we experienced in Minnesota this summer, are becoming more and more common. We need to be doing everything we can to support those impacted and limit the economic toll they take," said Sen. Smith. "These federal loans will help sustain local businesses and farms as they deal with the fallout from the drought." 

Applicants can apply online at DisasterLoanAssistance.sba.gov/ela/s and should enter the declaration number 18228. 

The deadline for the loan applications is May 29, 2024.