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2020.08.03 CC Packet
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2020.08.03 CC Packet
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City Council
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COVID-19 SMALL BUSINESS RESOURCES Updated April 6, 2020 Program Agency Eligibility Amount Interest Collateral Requirements Terms Deferral Period Forgivable? Use of Funds Other/Notes SBA Economic Injury Disaster Loan Small Business Administration Small business or non-profit Up to $2M 3.75%-business 2.75% non-profit Security Interest in Business Property Up to 30 years Up to 12 months No, except for $10,000 loan advance Fixed debt, payroll, accounts payable, etc. that could have been paid if COVID-19 had not happened. Apply to SBA directly - Up to 3 to 4 weeks to process application - Apply online - $10,000 cash advance (maximum) - List of supporting financial documents requested - Approval can be based on credit score - Personal Guarantees for loans over $200k - Apply at: https://covid19relief.sba.gov/ SBA Paycheck Protection Program Small Business Administration Small business or non-profit Up to $10M 1% No 2 years Up to 6 months Yes (for expenses 8 weeks after getting the loan) Payroll, Interest on Mortgage, Rent, Utilities. Apply through a SBA approved lender. - Up to 1 to 2 weeks to process application - Apply through an SBA-Approved Lander - Loan based on 2.5x average monthly payroll - Smoother application process - No Personal Guaranty - Minnesota SBA Approved Lender Small Business Emergency Loan Program Minnesota Department of Employment & Economic Development Small business effected by Minnesota EO 20-04 and 20-08 that have been operational for at least one year $2500 to $35,000 0% Be willing to provide collateral or personal guarantee up to 20% Up to 5 years Up to 6 months Partial forgiveness may be available Funds are available for working capital -Apply through a non-profit lender (available on DEED’s website) -Must also apply for SBA Economic Injury Disaster Loan assistance at the same time -Are unable to qualify for a loan from a bank or credit union. -Must be current on financial obligations as of March 1, 2020. Apply at: MN DEED Fund Technical Assistance Open to Business Metropolitan Consortium of Community Developers Current and perspective entrepreneurs Free advising and technical assistance on business issues and lending options Open to Business Website Tyler Hilsabeck thilsabeck@mccdmn.org (612) 789-8838 Small Business Development Center Small Business Development Center Small businesses or perspective Free advising on pre-venture, start-up or established business services Unemployment and Other Programs Shared Work Program Department of Employment and Economic Development Minnesota businesses Workers work reduced hours, and the workers are paid unemployment benefits to offset part of their reduced wages. Helps businesses and employees avoid a layoff while keeping trained staff and increases operations more quickly when conditions improve. Unemployment Insurance Department of Employment and Economic Development Workers unemployed due to COVID-19 N/A N/A N/A N/A N/A N/A Unemployed workers should apply online using the schedule set out according to social security number. The waiting period has been waived. UI tax rate for businesses will not increase if workers collect unemployment benefits
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