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Federal gov expands drought disaster loan coverage in Northern MN

A photo of grass taken from the level of the grass. Most of the grass dry brown. Two small, yellow flowers are growing among the mostly light brown patch of grass. Purple flowers and a metal sculpture appear very blurry in the distant background.
Stella Mayerhoff
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KAXE / Report for America
Flowers grow through brown grass Aug. 10, 2026, in Grand Rapids.

Small businesses and nonprofits throughout north-central Minnesota are now eligible for low-interest loans up to $2 million.

The U.S. Small Business Administration expanded drought disaster loan eligibility to businesses in more Northern Minnesota counties.

On Friday, Nov. 6, the administration announced loans are now available for small businesses and nonprofits in north-central Minnesota, including those in Aitkin, Carlton, Crow Wing and Cass counties.

Some southern Minnesota counties, including those in the Twin Cities metro, are also eligible.

The U.S. Department of Agriculture declared a drought disaster in Minnesota in September. The SBA subsequently opened disaster loan eligibility to Beltrami, Itasca, Koochiching, Lake of the Woods and St. Louis counties, which experienced the worst of the persistent summer drought.

About 80% of the state was in a moderate drought — or worse — during the driest statewide conditions in August, according to the Department of Natural Resources.

Data from the Minnesota Department of Natural Resources shows the percent of the state under drought conditions from January 2021 to September 2026.
Contributed
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Minnesota Department of Natural Resources
Data from the Minnesota Department of Natural Resources shows the percent of the state under drought conditions from January 2021 to September 2026.

The maximum amount for the drought disaster loan is $2 million. The loan term may last up to 30 years, and recipients are not required to make payments or pay interest for the first year after distribution.

The deadline for newly added counties is June 21, 2027.

More information, including how to apply, is available at the SBA's disaster relief website.

A full list of eligible counties in Minnesota can be found below.

First round-eligible counties (applications due April 26, 2027):

  • Beltrami
  • Itasca
  • Koochiching
  • Lake of the Woods
  • St. Louis

Second round-eligible counties in Northern Minnesota (applications due July 21, 2027):

  • Aitkin
  • Carlton
  • Cass
  • Crow Wing
  • Wadena

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