• Aerial Photo of Sauk Centre
    Updates Specific To Loans & Financial Assistance Options:
    updated as of 10/26/2020

    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. 

    UPDATE REGARDING STEPS TO LOAN FORGIVENESS (10/26/2020): NEWS RELEASE / MINNESOTA DISTRICT / Date: Oct. 26, 2020 Contact: Sarah Swenty, sarah.swenty@sba.gov
    Release Number: 21.3.MN Follow: Twitter, Facebook, Instagram

    Five Tips About Paycheck Protection Program Loan Forgiveness Minnesota Small Businesses Should Know

    Minneapolis – As the U.S. Small Business Administration continues working with lenders nationwide on the Paycheck Protection Program and processing PPP loan forgiveness, the SBA Minnesota District shares five PPP loan forgiveness tips small business owners should know:

    1. PPP loan forgiveness is applied for through a lender, not the SBA.
    • Borrowers can download PPP loan forgiveness applications from SBA’s website at www.sba.gov/paycheckprotection and then submit it with required information to the lender that provided them with a forgivable PPP loan.
    • Lenders have up to 60 days to review a PPP loan forgiveness application and the SBA has up to 90 days to review the forgiveness application once received from the lender.
    • The SBA remits the amount forgiven to the lender, who must process the forgiveness payment before notifying the PPP borrower of the amount.

    2. Approximately 62% of Minnesota’s PPP borrowers are eligible for a simplified PPP loan forgiveness application that can take as little as 15 minutes to complete.
    Earlier in October, the SBA and Treasury released a simpler forgiveness application for PPP loans of $50,000 or less and streamlined the PPP loan forgiveness process for a majority of the borrowers. The simplified application has only seven items for a PPP borrower to verify and significantly reduces the time and paperwork needed, providing financial and administrative relief to America’s smallest businesses while ensuring sound stewardship of taxpayer dollars.

    3. Businesses still need to document PPP loan money was spent on eligible expenses.
    Since a key part of forgiveness for PPP loans is using the money for eligible expenses, borrowers need to provide documentation, including verification of payroll and non-payroll expenses, with the forgiveness application as required by the CARES Act.

    4. The SBA has already started remittance to lenders.
    The SBA began approving PPP loan forgiveness applications and remitting forgiveness payments to lenders for PPP borrowers Oct. 2, 2020.

    5. Help is available for the forgiveness process and recovery plans.
    To ease small businesses through the forgiveness process and empower them to confidently move their business forward, the SBA has set up a recovery hub at www.sba.gov/recovery with essential details, resiliency tips and connections to local assistance. SBA’s Resource Partner Network – which includes Minnesota Small Business Development Centers, SCORE Mentors, Women’s Business Centers and the Veterans Business Outreach Center – also provides one-on-one business advising and technical assistance to small businesses at no- or low-cost.

    “The Paycheck Protection Program was an overwhelming success for America’s small business sector, which is the engine of our economy,” SBA Great Lakes Regional Administrator Rob Scott said. “While working closely with lending institutions, our partners and community and economic leaders, we swiftly delivered more than $88 billion of much-needed economic relief to this region’s job creators. We remain dedicated to our mission to ensure small businesses can recover and continue to start, grow and expand as we safely reopen our economy.”

    In the Great Lakes Region, 777,925 forgivable PPP loans valued at more than $88.1 billion were approved. In Minnesota over 102,000 forgivable PPP loans valued at approximately $11.3 billion were approved. More information about the PPP is available at www.sba.gov/paycheckprotection.

    # # #

    About the U.S. Small Business Administration
    The U.S. Small Business Administration makes the American dream of business ownership a reality. As the only go-to resource and voice for small businesses backed by the strength of the federal government, the SBA empowers entrepreneurs and small business owners with the resources and support they need to start, grow or expand their businesses, or recover from a declared disaster. It delivers services through an extensive network of SBA field offices and partnerships with public and private organizations. To learn more, visit www.sba.gov.

    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.

    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 

    Additional Information
    Contact the SBA disaster assistance customer service center.
    Call 1-800-659-2955 (TTY: 1-800-877-8339) or e-mail 
    SBA.gov/disaster for more information.


    Small Business Emergency Loan (DEED):
    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 
    neilf@stearnshra.com 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