SBA makes new disaster loans available for businesses damaged in Minneapolis riots

(FOX 9)

The federal government is making available more help for businesses that were damaged or destroyed during the riots after the death of George Floyd.

Brand new low-interest disaster loans from the Small Business Administration are now available and the SBA is urging people to apply.

Along Lake Street in Minneapolis, where damage from the riots remains, the money is much needed. While cleanup is still underway, it is now a disaster zone in the eyes of the Small Business Administration, which is offering low-interest loans.

"Anybody who was damaged in the civil unrest that happened in late May through early June whether they are a homeowner or a business owner or even a renter [can take advantage of the loans]," explained Carl Dombek with the SBA Disaster Loan Program. "If they had damage associated with the civil unrest they can apply for a low-interest loan that covers what’s not covered by insurance or other recoveries.”

The City of Minneapolis alone estimates there were more than a thousand properties damaged, burned, or destroyed after the death of George Floyd in late May.

The new emergency loans apply to businesses and homeowners in Hennepin, Ramsey and six other metro counties.

"It’s all based on need, as I say not covered by insurance or other recoveries," added Dombek about what is available for businesses. "But the short answer is it can be up to $2 million for either physical damage, economic injury, or some combination of both."

The application deadline ends on October 2 for businesses and homeowners with damage. Those that suffered economic losses have until May 3 of next year.

The interest rates are 1.25 percent for homeowners, 2.75 percent for non-profits, and three percent for small businesses.

"And don’t self-select," concluded Dombek. "Even if you don’t think you afford a loan, let us take a look at it and make a decision. And if we offer you a loan and you decide it’s not right for you, there’s no harm done, there’s no cost to apply and we would rather you have this as an extra tool in your recovery toolkit."

Because of the pandemic, the entire application process has gone virtually. You can visit the SBA's website to apply.