St. Paul: Loans offered for residents impacted by Skyline Tower fire

In late October, a fire at the Skyline Tower housing complex on St. Anthony Avenue forced a quick evacuation of all 25 floors, temporarily displacing more than 770 residents while activating sprinklers on multiple levels.

Most, but not all, residents have been able to return to their apartments, but multiple levels suffered fire, smoke or severe water damage. To assist residents, the U.S. Small Business Administration is offering low-interest disaster loan assistance, as well as help with applications, from a temporary office that opened on University Avenue in late December.

The disaster loan outreach center, located within the Sanneh Foundation at 1276 University Ave W., is closed through Sunday, and resume normal business hours on Monday. It closes permanently on Jan. 10.

The SBA issued a disaster declaration in response to a request received from Gov. Tim Walz on Dec. 19.

“I do not know the total amount of damages this caused in total dollar loss, but the amount and extended displacement of residents in addition to services provided would be substantial,” said St. Paul Deputy Fire Chief Jamie Smith, in a recent email.

Tenants are eligible to apply for low-interest personal property loans of up to $100,000 to replace or repair uninsured and underinsured items such as clothing, rugs, furniture and appliances.

Beyond residents who were immediately displaced, any Minnesota business, private nonprofit or resident who can show they were financially affected by the Skyline Tower fire may apply for disaster relief in the form of both physical damage loans, for disaster-damaged assets and real estate, and Economic Injury Disaster Loans known as EIDLs. The disaster declaration covers Ramsey County and Anoka, Dakota, Hennepin and Washington counties.

For those with insurance, disaster loans may cover the gap between an insurance settlement and what is needed to fully recover. The SBA uses loss verifiers to review the extent of damages.

“We want to aid the renters who were impacted by the fire directly … (but) the fire may have caused nearby small businesses to experience a drop in business and economic loss,” said Jackson Collier, a public affairs specialist with the SBA, in an interview.

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The loans, issued directly from the U.S. Treasury, come with interest rates as low as 3% and additional benefits, such as no payments or accrued interest for the first year, and loan terms of up to 30 years. Even after the temporary disaster relief center closes on Jan. 10, applications for physical damage loans will be accepted online through Feb. 20, and for economic injury loans through Sept. 22, at SBA.gov.

The fire, which started on the 12th floor, activated the building’s fire protection sprinklers on the 12th, 13th and 14th floors, and the water caused a power outage, according to the St. Paul Fire Department. The building’s elevators, fire suppression system, heat and water supply went out, but were later repaired. Most residents who have not already returned are expected to be able to move back into their units in time.

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