By Jalen Maki
Tomahawk Leader Editor
WISCONSIN – Governor Tony Evers and U.S. Senator Tammy Baldwin (D-Wisconsin) today announced that Wisconsin businesses that have suffered losses due to this year’s unusually mild winter may be eligible for a federal disaster loan program.
The announcement came one day after 14 northern Wisconsin legislators, including State Senator Mary Felzkowski (R-Tomahawk) and State Representative Calvin Callahan (R-Tomahawk), in an open letter encouraged Evers to work with the U.S. Small Business Administration (SBA) to declare parts of the state experiencing economic losses due to the lack of snow as “economic injury disaster areas,” allowing businesses in those areas to apply for loans through the U.S. SBA Economic Injury Disaster Loan (EIDL) program.
A release from Evers’ office said this winter has lacked Wisconsin’s typical snowfall in many areas of the state, which has affected travel and recreation businesses that depend on it for activities such as downhill and cross-country skiing, snowshoeing and snowmobiling.
“The National Weather Service reports that snowfall statewide has been 20 to 30 inches below normal this winter,” the release stated. “In the Lake Superior snowbelt, generally across Ashland, Iron and Vilas counties, snowfall was 40 to 70 inches below normal.”
According to the release, Evers and Baldwin have been advocating for the SBA to confirm disaster coverage extends to businesses impacted by Wisconsin’s extraordinary winter conditions, and following those conversations, SBA confirmed that it will consider business losses from recent low snowfalls over the winter months to be related to drought and therefore eligible for assistance.
Many Wisconsin counties are already covered by a pre-existing disaster designation for drought from the U.S. Department of Agriculture, which allows businesses in those counties to seek emergency loans through the EIDL program to offset business losses related to the drought.
“The loans are designed to help businesses get through emergency situations that have impacted their economic well-being,” the release said.
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, according to the release.
In order to take advantage of the program, businesses must apply by their county’s application deadline.
Businesses in Lincoln, Langlade, Marathon and Taylor Counties must apply by Monday, May 13.
The application deadline for Forest, Oneida, Price and Vilas County businesses is Wednesday, May 29.
Other counties throughout the state have a variety of application deadlines, ranging from Monday, April 8 to Wednesday, July 31.
Businesses may submit applications and find additional disaster assistance information at http://lending.sba.gov. Applicants may also call SBA’s Customer Service Center at 800-659-2955 or email [email protected] for more information on SBA disaster assistance. Individuals who are deaf, hard of hearing or have a speech-related disability can dial 7-1-1 to access telecommunications relay services.
Completed applications may also be mailed to U.S. Small Business Administration, Processing and Disbursement Center, 14925 Kingsport Road, Fort Worth, Tex., 76155.
Applicants may also contact the Wisconsin Economic Development Corporation with their EIDL-related questions at [email protected].
“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,” Evers said. “In partnership with Senator Baldwin, my administration has been working with the federal Small Business Administration to ensure businesses in impacted counties are eligible for relief, and I’m glad to announce that our efforts have been successful. 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.”
“In Wisconsin, our snowy winters are not just another season, but also a huge economic driver, particularly in the northern part of the state,” Baldwin stated. “This year’s low snowfall has hit many Wisconsin businesses hard, and we need to do more to ensure they get some relief. I was happy to partner with Governor Evers to successfully push the Biden administration to ensure northern Wisconsin businesses impacted by this year’s low snowfall can get the support and help they need.”