First I'd like to say that I hope all of you are staying safe and that you and your families are well. These are very strange and trying times for our community, country, and world but we will get through this just as we've gotten through every crisis that's challenged us over time.
While we are all struggling to deal with these changes I know that small business owners are experiencing added and increasing pressures in trying to figure out how to sustain their business and provide for their employees. On that note I wanted to pass on the information I received this morning from the Small Business Administration that outlines the relief packages in Minnesota and Wisconsin.
**This is not intended as a recommendation to utilize any of these options. I merely want to make sure all of you are aware of the resources available to help you through these times.
MN DEED Emergency Loan Program Now Accepting Applications
The Minnesota Department of Employment and Economic Development (DEED) has created a Small Business Emergency Loan Program to help Minnesota small business owners who need immediate assistance during COVID-19 closures.
- The loan program is intended to help businesses temporarily closed under Executive Order 20-04, later clarified by Executive Order 20-08, which stopped onsite customer dining at restaurants and bars and closed an extensive list of other small businesses.
- The Small Business Emergency Loan Program will make $30 million available.
- These dollars will be used to make loans of between $2,500 and $35,000 for qualifying small businesses.
- The loans will be 50% forgivable and offered at a 0% interest rate.
- If other financing becomes available to small businesses that received an emergency loan, such as federal funding, the emergency loan must be repaid.
These emergency loans will be made through an existing network of lenders DEED works with across the state. Check out the list of lenders and application materials on DEED’s website.
Minnesota small businesses should contact one of the lenders on the list. If they still have questions about this emergency loan program, they can email ELP@state.mn.us.
WI Offers Grant Assistance to Existing CDFI Loan Clients
The Wisconsin Economic Development Corporation (WEDC) Small Business 20/20 Program provides grant funds to approved community development financial institutions (CDFIs). Approved CDFIs will award grants of up to $20,000 to their existing loan clients to assist with cash-flow challenges resulting from COVID-19.
Businesses that are not currently CDFI clients are not eligible to access these funds, but WEDC will work to expand access to funding through other programs as more resources become available. If you have more questions, view this FAQ page on SB20/20.
SBA Economic Injury Disaster Loans in High Demand
The U.S. Small Business Administration’s Economic Injury Disaster Loan Program (EIDL) continues to take applications. They are experiencing high traffic to their website. If you are unable to access their website, try again at off peak times.
- The SBA EIDL program can provide low-interest loans of up to $2M to businesses and private non-profits.
- EIDLs may be used to pay fixed debts, payroll, accounts payable and other bills.
- The interest rate is 3.75% for small businesses without credit available elsewhere. The interest rate for non-profits is 2.75%.
- EIDLs have long-term repayment options, up to a maximum of 30 years. Terms are determined on a case-by-case basis, based on borrower's ability to repay.
Apply for the loans online.
Before starting your application online, you can review the materials here:
- SBA Form 5 or SBA Form 5C for sole proprietorships - SBA loan application
- IRS Form 4506T - Tax Information Authorization for the applicant, principals and affiliates.
- Complete copies of the most recent Federal Income Tax Return.
- SBA Form 2202 - Schedule of Liabilities.
- SBA Form 413 - Personal Financial Statement.
- SBA Form 1368 - Monthly sales figures
- Training materials for the program can be found at the SBA Minnesota District Office website.
If you still have questions you can contact the SBA's Disaster Customer Service Center at 800-659-2955 or email email@example.com. Individuals who are deaf or hard-of-hearing can call 800-877-8339.
This is meant for educational purposes only. The information is based on data gathered from what we believe are reliable sources. It is not guaranteed as to the accuracy and is not intended to be used as the basis for any investment decisions. The information presented does not constitute a solicitation for the purchase or sale of any security and is not a recommendation of any kind. Please consult your financial advisor before making financial decisions. (03/20)