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Federal loans available for north Minneapolis residents

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North Minneapolis residents can apply for federal loans this week at a temporary information center set up at Lucy Laney School.

The loans come after the Small Business Administration made a disaster declaration for north Minneapolis at Gov. Mark Dayton's request. The SBA will offer disaster loans up to $200,000 for homeowners whose properties were damaged in the May 22nd tornado. 

SBA spokesman Matthew Young said interest rates are as low as 2.6 percent for homeowners and renters, 3 percent for nonprofit organizations, and 4 percent for businesses.  

"I doubt that they could get interest rates that low at their local bank," Young said.  

Young said loan terms will depend on an applicant's credit history and ability to repay the loan. SBA loans have terms up to 30 years.