Flood Recovery Financing
2012 Northeast Minnesota Flooding
The Minnesota Investment Fund has $15 million in disaster-recovery funding for flood-affected communities.
Local government units (counties, cities, etc.) apply for the funding and then provide loans to businesses that were directly and adversely affected by the storms and flooding that occurred June 14 through June 21 , 2012.
Eligibility
Businesses, cooperatives, utilities and nonprofits are eligible if they were in operation prior to June 14, 2012 and are located in one of 15 counties or tribal lands included in the presidential disaster declaration DR-4069.
Counties and tribal lands included in the declaration are: Aitkin, Carlton, Cass, Cook, Crow Wing, Dakota, Goodhue, Itasca, Kandiyohi, Lake, Meeker, Pine, Rice, Sibley, St. Louis and the Fond du Lac Band of Lake Superior Chippewa, Grand Portage Band of Lake Superior Chippewa and the Mille Lacs Band of Ojibwe.
Eligible expenses include repair of buildings, leasehold improvements, fixtures and equipment, loss of inventory and cleanup costs. Non-eligible expenses include economic injury, business relocation costs, other non-capital losses, and refinancing of debt existing prior to June 14, 2012. However, the U.S. Small Business Administration may provide financing for such losses.
Application Process
Step One - Review this Minnesota Investment Fund Disaster Recovery Financing document, which outlines the general framework that will be used by DEED to award funding.
Step Two - Local governments (typically counties) use these Sample Guidelines to develop their own local guidelines and criteria for evaluating loan applications and administering the program.
Step Three - Once the local guidelines have been approved by local officials, the local government should forward the document to DEED along with this completed MIF Disaster Recovery Application, which outlines the expected business financing needed for recovery. Once DEED reviews the MIF application and the guidelines have been reviewed by the legislature, grants agreements between DEED and the local government will be completed.
Step Four - Following DEED’s approval of the MIF Disaster Recovery Application and the completion of the grant agreement, local governments may develop loan agreements with business recipients. To ease administration, DEED recommends that local governments use this DEED Business Loan Application. DEED will disburse funds for each recipient as expenditure information is received.
For More Information
Contact Bob Isaacson at 651-259-7458 or email bob.isaacson@state.mn.us.