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Updates Specific To Loans & Financial Assistance Options:updated as of 4/2/2020
Federal SBA Paycheck Protection Program (PPP): The Paycheck Protection Program is a loan designed to provide a direct incentive for small businesses to keep their workers on the payroll. SBA will forgive loans if all employees are kept on the payroll for eight weeks and the money is used for payroll, rent, mortgage interest, or utilities.The Paycheck Protection Program will be available through June 30, 2020.
This program is for any small business with less than 500 employees (including sole proprietorships, independent contractors and self-employed persons), private non-profit organization or 501(c)(19) veterans organizations affected by coronavirus/COVID-19.
Businesses in certain industries may have more than 500 employees if they meet the SBA’s size standards for those industries.
Small businesses in the hospitality and food industry with more than one location could also be eligible at the store and location level if the store employs less than 500 workers. This means each store location could be eligible. More info here on the SBA site.
IMPORTANT NOTE REGARDING PPP APPLICATIONS: As of 4/2/2020 it is confirmed that all 3 of our local lenders (Central MN Credit Union, First State Bank, and MN National Bank) are participating in this program. Please contact your local lender to apply. We have included the forms and informational sheet here for you to use.
Federal SBA Disaster Loans (COVID-19):
The U.S. Small Business Administration is offering a low-interest federal disaster loans for working capital to small businesses and private non-profits suffering substantial economic injury as a result of the Coronavirus (COVID-19). SBA’s Economic Injury Disaster Loans offer up to $2 million in assistance and can provide vital economic support to small businesses to help overcome the temporary loss of revenue they are experiencing.These loans may be used to pay fixed debts, payroll, accounts payable and other bills that can’t be paid because of the disaster’s impact. The interest rate is 3.75% for small businesses. The interest rate for non-profits is 2.75%. SBA offers loans with long-term repayments in order to keep payments affordable, up to a maximum of 30 years. Terms are determined on a case-by-case basis, based upon each borrower’s ability to repay.
- SBA Disaster Assistance Loans
- SBA Disaster Assistance in Response to the Coronavirus
- Please visit this webpage to understand the loans, download the forms to apply, and much more.
- If you have questions about the SBA’s EIDL Loans, please watch this 14 minute video to help answer some FAQs
Federal SBA Economic Injury Disaster Advance Loan: In response to the Coronavirus (COVID-19) pandemic, small business owners in all U.S. states, Washington D.C, and territories are eligible to apply for an Economic Injury Disaster Loan advance up to $10,000. THis advance will provide economic relief to businesses that are currently experiencing a temporary loss of revenue. Funds will be made available within three days of a successful application. This load advance will not have to be repairs. Apply for the Load Advance here.
Contact the SBA disaster assistance customer service center.
Call 1-800-659-2955 (TTY: 1-800-877-8339) or e-mail email@example.com.
Visit SBA.gov/disaster for more information.
Small Business Emergency Loan (DEED):
Following Executive Order 20-15, DEED has established a loan program to assist small businesses Small businesses are a vital part of Minnesota’s economy and this program will provide a source of working capital to help businesses sustain operations during this challenging time.
Businesses should apply directly through a certified lender. A list of lenders and application materials are available in the tabs. Nonprofits are not eligible for this program. The program is still being developed and loans will be available soon. (not yet available as of 3/30/2020)
- Range from $2,500 to $35,000 and will be based on economic injury and financial need
- Be interest free
- Be paid back monthly over five years, first payment deferred six months
- Partial forgiveness may be available
- Be provided to only Minnesota-based businesses
- Eligible Businesses: Please click here to see the list of eligible businesses effected by Executive Order 20-04 and 20-08.
- More info here.
Minnesota Small Business Loan Guarantee Program (DEED):
The Minnesota Department of Employment and Economic Development (DEED) now offers the Minnesota Small Business Loan Guarantee Program. This temporary program, established in response to the 2020 public health emergency, will help Minnesota lenders provide capital to small businesses in Minnesota affected by COVID-19. These loans can be used for a variety of purposes and can be subordinate to other financing. Allowable loan uses must be exclusively in Minnesota and include machinery or equipment purchases, maintenance, or repair; expenses related to moving into or within Minnesota; and working capital when the working capital is secured by fixed assets when possible.
The funds can only be provided to Minnesota businesses with fewer than the equivalent of 250 employees. The number of employees includes parent company and all locations. The program will provide an 80% guarantee up to a maximum of $200,000. A fee of .25 percent on the guarantee loan principal will be charged for each loan enrolled into the program.
All loans will be made by lenders enrolled in the program – no loans will come directly from DEED.
At this time DEED is seeking applications from lenders that want to be part of this program, this information will be updated as soon as the list of approved lenders is made available. (not yet available as of 3/30/2020) More info here.
Small Business Emergency Loans (Stearns County):
Stearns County Housing and Redevelopment Authority (HRA) and Stearns County have established a loan program to assist small businesses located in Stearns County (excluding the City of St. Cloud) that have been adversely affected during the coronavirus pandemic and whose industry is named in Executive Order 20-04 and Executive Order 20-08.
Small businesses are essential to Minnesota’s economy and this program will provide a source of working capital to help businesses sustain operations during this challenging time.
- Range from $2,500 to $5,000 and will be based on economic injury and financial need
- Loan proceeds will be restricted to working capital only
- Recipients will be charged a 1% loan origination fee, plus recording fees
- Be interest free
- Be paid back monthly over two years, first payment deferred six months
- Provided to only MN-based businesses
- Loans will require sufficient collateral or personal guarantee to cover balance of loan
- If the business receives funding from SBA, Federal funding, or MN DEED, the loan must be repaid, in full, upon receipt of funds from the other source.
In case of default of loan or permanent closure or sale of business, the loan immediately becomes due and payable in full.
The program is still being developed and loans will be available soon. (not yet available as of 3/30/2020)
Businesses should fill out the application form electronically and email to firstname.lastname@example.org or submit by mail to:
Stearns County Housing and Redevelopment Authority
P.O. Box 484
Cold Spring, MN 56320
Business owners who have questions about the loans should call the HRA at 320.685.7771
- Small Business Emergency Loan Terms
- Fillable Application Form for the Small Business Emergency Loan Program
- More info here.