BY TINA L. SCOTT
EDITOR
Some Wisconsin businesses affected by this year’s unusually mild winter and low snowfall may be eligible for a federal disaster loan program if they suffered economic losses specifically due to this year’s lack of snow. Many travel and recreation-related businesses depend on snowfall for activities such as downhill and cross-country skiing, snowmobiling, and snowshoeing. But they aren’t the only businesses affected. Businesses that rely on income from plowing snow and other non-tourism-focused business activities affected by low snowfall have also suffered economic loss.
The U.S. Small Business Administration (SBA) has confirmed they will consider business loss from low winter snowfalls during the 2023-2024 season to be related to the drought and eligible for disaster assistance emergency loans to help cover losses.
Most counties in Wisconsin have a pre-existing disaster designation for drought issued by the U.S. Department of Agriculture back in 2023. The SBA offers Economic Injury Disaster Loans (EIDL) in drought-designated areas, and the SBA has confirmed businesses impacted by the lack of snow can apply for the same emergency loans.
The EIDL program allows businesses to borrow up to $2 million to cover actual losses. If approved, they allow for a deferred payment for the first 12 months, are interest-free for the first 12 months, and have further interest rates that will not exceed 4%. In addition, the loan period has a maximum life of 30 years, but the term will be determined by the applicant’s ability to repay the loan.
For the northcentral Wisconsin area, key application deadlines are as follows:
Lincoln, Langlade, Marathon, and Shawano Counties: May 13, 2024
Oneida County: May 29, 2024
Businesses that have been economically impacted by this drought may submit applications to the SBA at: https://lending.sba.gov.