Northern and western Wisconsin businesses struggling this winter because of a lack of frosty weather, snow and ice may be eligible for federal disaster loan relief, according to two Wisconsin political officials.
Gov. Tony Evers and U.S. Sen. Tammy Baldwin, D-Wisconsin, announced Tuesday that Wisconsin businesses, including those in Chippewa, Eau Claire, Dunn and La Crosse counties, may be eligible for the disaster loan program if they have suffered losses because of this year’s unusually gentle winter.
The lack of snow and ice has impacted travel and recreation-based businesses that depend on the frosty for activities, such as downhill and cross-country skiing, ice fishing, snowshoeing and snowmobiling.
The 10th Annual Jig’s Up ice fishing competition took place in February 2023 on Lake Wissota. The event was canceled in 2024 because of a lack of ice on the lake.
Audrey Korte
Canceled events hurt tourism
Sue Leonard, Chippewa Falls Area Chamber of Commerce tourism director, said a host of events were canceled in Chippewa County because of the unusually heated weather this winter.
“On Valentine’s Day there was a candlelight snowshoe activity that was canceled. Ice fishing tournaments have been canceled. You know, just the clubs and the businesses that have planned those activities weren’t able to hold them without any ice on the lake or snow,” she said. “Snowmobile clubs never even got out into the woods at all this winter unless they went somewhere else.”
Andrea Gabriel and Jim Schmidt of Chippewa Falls pose with their catch at weigh in during the 10th Annual Jig’s Up ice fishing competition in February 2023 on Lake Wissota. The event was canceled in 2024 because of a lack of ice on the lake.
Audrey Korte
The Chippewa Valley Snowmobile Organization has agreements with landowners to have the trails run through their properties. The snow insulates the land and minimizes impact from snowmobiles, but only if it is deep enough. Limited snow meant the trails were never opened this year, Leonard said.
Additionally, cross country skiing and even a fat tire biking outdoor recreational activity were all impacted because of the lack of snow, she said.
Businesses like bars, restaurants and hotels that typically have visitors come in for outdoor snow recreation felt the impact of not having any snow during our winter months.
“Talking with some of the businesses that rely on, say, snowmobile traffic coming into the county — Chippewa County is a snowmobile friendly county — I would say they didn’t see as much traffic. They didn’t have any visitors coming in with their trailers like they normally would see in January and this time of year,” she said.
Snowmobilers enjoy winter weather in western Wisconsin.
Broad western Wisconsin impact
La Crosse County has seen similar issues to Chippewa County when it comes to businesses being hit strenuous by a lack of winter weather.
“It does affect the area when people can’t come in. The hotels see the drop in room revenue and storefronts and restaurants don’t see the activity,” said A.J. Frels, Explore La Crosse executive director.
“It’s more widespread than probably one thinks — it’s beyond a hotel or restaurant, so to speak.”
The National Weather Service reports that snowfall statewide has been 20 to 30 inches below normal this winter. In the Lake Superior snowbelt, generally across Ashland, Iron and Vilas counties, snowfall was 40 to 70 inches below normal.
A snowmobile rider enjoys a winter trail in Chippewa County.
The U.S. Small Business Administration confirmed that a broad list of Wisconsin counties are eligible for the disaster loan program. The administration will consider business loss from low snowfalls over the winter months to be related to the drought, and therefore businesses in the region are eligible for assistance.
“I think it’s great that the governor has pushed this forward and helped our businesses, especially small ones,” Frels said. “I’m sure you know that they can borrow up to $2 million with low interest.”
In addition, Evers and Baldwin are encouraging Wisconsinites to support Wisconsin businesses by taking advantage of the remainder of the winter season and finding alternative activities in northern and central Wisconsin if their original plans are impacted by weather.
“The lack of snow we’ve experienced so far this winter has had serious economic impacts on folks and businesses, especially in our northern counties, who rely on snow and winter weather to attract customers and be successful,” Evers said in a press release. “I encourage all eligible businesses to apply for these loans as soon as possible, and in the meantime, I encourage Wisconsinites to plan a trip, visit local businesses and find other exciting ways to enjoy winter in Wisconsin.”
A pair of snowshoers enjoy the winter in western Wisconsin.
Many counties in the state are already covered by a pre-existing disaster designation for drought from the U.S. Department of Agriculture. The designation allows businesses in counties identified as drought disaster areas to be eligible for emergency loans to offset their business losses in those counties if their business loss is related to the drought.
“In Wisconsin, our snowy winters are not just another season, but also a huge economic driver, particularly in the northern part of the state. This year’s low snowfall has hit many Wisconsin businesses hard, and we need to do more to ensure they get some relief,” Baldwin said in a press release.
Impacted businesses in counties with a drought declaration can apply for the U.S. SBA Economic Impact Disaster Loans. The loans are designed to aid businesses get through emergency situations that have impacted their economic well-being.
Under the program, businesses can borrow up to $2 million to cover their actual losses. Businesses pay no interest on the loan for the first year and a maximum rate of 4% for the rest of the loan period.
Businesses in Eau Claire, Dunn, and Chippewa counties must apply for aid by May 6. Businesses in La Crosse County must apply by July 31.
La Crosse Tribune reporter Gavin Michaelson contributed to this story.
