~Emergency loans to help businesses, homeowners and renters~

Governor Tim Pawlenty is asking the Small Business Administration (SBA) to make financial assistance available for residents of Browns Valley. The Small Business Administration Disaster Declaration request was made today by the Governor in response to damage caused by flooding of the Little Minnesota River earlier this month. More than 140 structures including homes, mobile homes and businesses have been affected by the flood waters.

In a letter sent to the federal agency today, the Governor said that Traverse 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. The damage did not meet the requirements for a Presidential Disaster Declaration however.

“During my visit to Browns Valley, I saw firsthand the damage to homes in the community. The financial assistance from the SBA will help Browns Valley residents face the challenges caused by the flooding,” Governor Pawlenty said.

When SBA approves the request, affected homeowners, renters and businesses in Traverse 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.

In addition to the SBA declaration, Browns Valley homeowners may also qualify for assistance through the Minnesota Reassessment of Homestead Property Damaged in a Disaster Program. Under this state program, property taxes may be reduced on homesteaded property that has been damaged as a result of flooding. Homeowners may contact the Traverse County Assessor's Office for more information. Also under this program, local governments will get a reimbursement for the resulting loss in its property tax revenue.

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