Minnesota small-business owners who are facing economic hardship during the COVID-19 outbreak should seek relief through the U.S. Small Business Administration’s (SBA) Disaster Loan Assistance Program. Minnesota is among states where the federal SBA’s low-interest loans available to cover small-business operating expenses after a disaster declaration was issued.
I urge small businesses to apply for these loans as they deal with the fallout of closures related to the COVID-19 outbreak. Small businesses are the backbone of our local economies and provide good-paying jobs for folks in our area. I anticipate additional state and federal assistance to be on the way as these loans themselves won’t cover all losses. Please continue to support our small businesses and buy local during this difficult time.
The Minnesota Department of Employment and Economic Development (DEED) indicates this program can provide low-interest loans of up to $2 million to small businesses and private non-profits. These loans can go toward working capital to meet need including payroll, accounts payable, and fixed debt payments that can’t be paid due to the COVID-19 pandemic.
Long-term repayment options of up to a maximum of 30 years are available at 3.75% interest, and at 2.75% interest for non-profits. Businesses can defer payments for the first four months and it is recommended owners apply online at sba.gov/funding-programs/disaster-assistance.
Loans can be directly dispersed within three weeks. Businesses will need to gather their tax statements from last year, in addition to providing financial information to show current and expected business losses. Questions can be directed to the SBA Hotline at 1-800-659-2955. More information from Minnesota’s DEED can be found at https://mn.gov/deed/.
Have a good day,