Small businesses that rely on Minnesota winters could be eligible for federal disaster assistance due to lack of snow

Small businesses that rely on Minnesota’s typically cold winters and count on snow to operate could be eligible for federal assistance after the region’s unusually mild winter.

Gov. Tim Walz announced Thursday that Federal Economic Injury Disaster Loans are available to businesses in 81 Minnesota counties where federal drought declarations are in effect. Businesses can see if they qualify and apply for loans through the Small Business Administration.

The governor’s office says it’s the first time it’s taken such steps because of a lack of snow.

Snowfall totals across the state this season were among the lowest on record and temperatures were abnormally high, limiting the season for skiing, snowmobiling, ice fishing and other winter activities.

During the winter, businesses were already taking cost saving measures. In Finland, owners of Our Place bar and restaurant told MPR News they were only open five days a week to save money.

“This year is unbelievable. We’ve got no snow. It’s been raining. And it is really hurting us,” said Bob Buus, who runs Our Place bar and restaurant with his wife Dianne.

Peter McClelland runs White Wilderness Sled Dog Adventures near Ely. The business sits in the snowiest part of Minnesota. The area is often buried in 100 inches or more over the course of a winter. McClelland told MPR News in January that this winter was “more like mud wilderness.”

“Normally, we’d have 15 sleds going out a day, every day, this time of year,” McClelland said. Even without the snow, he still has to pay for dog food, and vet bills, and to exercise his animals.

“Running a sled dog business like this is a labor of love. You do it because you want to. It’s great to share this with the guests that come up. But you do not make enough money to really be able to weather this kind of disaster,” he said.

MPR News Correspondent Dan Kraker contributed to this report.