Federal disaster assistance loans up to $2 million could be on the horizon to support the struggling winter tourism businesses in Wisconsin, owing to the reduced winter snowfall. The offer, meant to alleviate losses from curtailed winter activities due to the snow shortage, will be based on the economic injury of each business and compliance with the U.S. Small Business Administration’s stringent criteria.
If instituted, these funds would be issued as low-interest, long-term loans with flexible repayment plans. However, some local businesses fear this may not adequately compensate for this season’s losses. Industry experts have voiced growing apprehension about climate change’s impact on Wisconsin’s winter tourism, highlighting the necessity for more long-lasting solutions.
Northern Wisconsin has undergone a significant shortfall in snow this winter with the National Weather Service reporting a 20 to 75-inch deficit. The dearth of snow has severely impacted activities such as snowmobiling, cross-country skiing, and snowshoeing, all vital to the local economy. Additional fallout is being felt by snow-dependent businesses, and a decline in tourist footfall could affect local restaurants, lodgings, and retail businesses indirectly.
Reports from counties like Forest, Iron, Langlade, Lincoln, Oneida, Price, and Vilas reveal revenue losses due to the unavailability of snowmobile and ski trails in December and January. Several businesses ranging from winter sports equipment rentals to accommodation have been hit hard by this lack of snow. The continued decline in snowfall has caused significant financial strain, and the unfavorable February forecast is further compounding the situation. Amidst these circumstances, community leaders are initiating efforts to lessen the impact and support the struggling businesses.
The U.S. Small Business Administration has classified these winter businesses eligible for federal assistance under the category of drought-related entities. This designation, confirmed by Gov. Tony Evers and U.S. Sen. Tammy Baldwin, allows these businesses to apply for emergency loans to counter their economic losses.
The program offering these loans is the Economic Impact Disasters Loan Program, offering up to $2 million to offset actual losses. Businesses can apply online or through a local Small Business Administration Office, with the first year being interest-free and the remaining term bearing a maximum rate of 4%. Applicants are advised to gather financial documents demonstrating the drought’s impact on the business.
Several counties in Wisconsin have been officially designated as disaster areas by the U.S. Department of Agriculture due to the drought, making them eligible for these emergency loans. Potential loan recipients are reminded that the application deadline is fast approaching, and successful applications may get funding within four to eight weeks from the closing date.
