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Pawlenty seeks disaster loans

Minnesota's governor said businesses and residents in seven counties affected by last month's storms should be given low-interest federal loans.

The federal government Friday denied Gov. Tim Pawlenty's request for help for individuals affected by the tornados and other storms on June 17. On Wednesday, he asked the Small Business Administration to help.

SBA provides low-interest disaster loans to homeowners, renters and businesses to fix or replace property damaged in disasters.

In his letter to the SBA, Pawlenty said at least 25 homes and businesses in Otter Tail and Wadena counties alone sustained uninsured losses of at least 40 percent of their value, the threshold for SBA loans.

He asked the SBA to make loans available in those counties and Faribault, Freeborn, Olmsted, Polk and Steele, as well as adjoining counties.