Hundreds affected by May 22 tornado apply for loans at Disaster Loan Outreach Center

In its seven days of operation, the Disaster Loan Outreach Center on the North Side of Minneapolis helped more than 700 people affected by severe storms and a tornado that struck on May 21-22. That included helping folks apply for more than 150 recovery loans from the U.S. Small Business Administration (SBA). And even though the center is now closed, residents, business owners and landlords in the disaster area can still apply for these loans by phone, by mail and online.

A total of 151 SBA recovery loan applications were filled out at the center. Also, 180 City housing loan applications were completed. Many others who came to the center received housing support and other services from the City and its partners.

Physical Disaster Loans are available from the SBA to residents and businesses in the area affected by the tornado. Loans up to $200,000 are available to homeowners to repair or replace damaged or destroyed real estate. Homeowners and renters are eligible for loans up to $40,000 to repair or replace damaged or destroyed personal property, such as clothing, furniture, cars or appliances. Businesses and private, nonprofit organizations are eligible for loans of up to $2 million. The SBA also offers Economic Injury Disaster Loans to help small businesses meet working capital needs caused by the disaster, and this type of loan is available regardless of whether the business suffered any physical property damage.

SBA loan applications still being accepted

Even though the Disaster Loan Outreach center is closed, residents, business owners and landlords in the tornado damage area can still apply for SBA loans. Those affected by the disaster can:

Regardless of their situation, folks in the tornado damaged area are encouraged to apply for an SBA loan . They must complete the SBA loan application and be denied for a loan to be eligible for many other forms of assistance.

Since the tornado struck the North Side on May 22, the City of Minneapolis and its numerous partners and volunteers have been working hard to help people in north Minneapolis get back on their feet following this disaster. From clearing streets and picking up more than a million pounds of debris, to making sure homes are safe to live in and connecting people with the resources they need, thousands are pitching in to help folks recover and rebuild. For more information, visit the City's tornado recovery web page.

Published Jul. 21, 2011