~ Emergency loans to help businesses, homeowners and renters~

Governor Tim Pawlenty is asking the Small Business Administration (SBA) to make financial assistance available for businesses and residents along the Gunflint Trail in Cook County. The Governor requested an SBA Disaster Declaration today because of the damage caused by the Ham Lake fire.

“The Gunflint Trail experienced one of the largest forest fires in decades and now the recovery process is underway for one of Minnesota’s premier tourist attractions,” Governor Pawlenty said. “Gunflint Trail residents and business owners asked me about federal assistance when I visited the area earlier this month. The SBA low-interest loans will help them rebuild.”

In a letter sent to the federal agency today, the Governor said that Cook County qualifies for the emergency loan program because the SBA damage threshold of at least 25 homes and/or businesses with 40 percent or more uninsured losses has been met. While the preliminary damage assessments meet SBA requirements, the damage does not qualify for assistance from the Federal Emergency Management Agency.

The Ham Lake fire began on May 5 and raged out of control in wilderness areas in Minnesota and Canada until it was contained on May 19. Portions of the Gunflint Trail were evacuated while more than 1,000 people battled the fire. Approximately 75,000 acres were burned and more than 130 structures were totally destroyed by the fire.

“The destruction of the forest and canoe entry points in the area of the fire will also have a serious economic impact on the remaining businesses that depend on campers, canoeists, and tourists for their livelihood,” Governor Pawlenty wrote.

When SBA approves the request, affected homeowners and businesses in Cook County will be eligible to apply for financial assistance in the form of low-interest loans. The SBA disaster loan program is the only form of SBA assistance not limited to small businesses.

Home Physical Disaster Loans are available to homeowners to repair or replace damaged or destroyed real estate not fully covered by insurance or other assistance, such as grants.

Homeowners and renters may also borrow to repair or replace damaged personal property like furniture, clothing, and appliances.

Business Physical Disaster Loans are for businesses of all sizes to cover the cost of repairing or replacing damaged or destroyed real estate, inventory, supplies, machinery and equipment, and other business assets owned by the business, not covered by insurance or other assistance.

SBA can also lend additional funds to help with the cost of making improvements to the property that protect, prevent or minimize the same type of disaster damage from occurring in the future.

Additional information can be found at www.sba.gov.