Over the last two weeks, many new state and federal programs have been created to support small businesses through the current COVID-19 pandemic, and we want to keep up to date. See below for more details on the current programs that are available as well as more on how to stay informed.
Stay up to date with weekly open calls for our business community
The Office of Mayor Jacob Frey is hosting weekly calls for our business community every Friday at 11 a.m. We will provide updates about current strategies to support businesses and answer your questions live. You can also submit your questions in advance online.
Register for the April 3 Open Call for our Business/Employer Community. After registering, you will receive a confirmation email containing information about joining the webinar.
Paycheck Protection Program
Businesses should be planning their requests to the new Paycheck Protection Program. The program becomes live as soon as this Friday (4/3). Businesses (including self-employed) can receive forgivable loans up-to-250% of its payroll to support its employees and occupancy expenses. No collateral requirements, no fees, no payments for 6 months. The loan is forgiven in eight weeks if the business can show it used the funds for eligible expenses. Lending through the businesses’ bank or an SBA qualified lender. The City is working with the Too Local to Fail Coalition led by the Minneapolis Chamber. We will be launching an awareness campaign for this resource tomorrow, so you will see more on it. Included in this campaign is a webinar hosted by Sunrise Banks at 1 p.m. on Thursday, April 2. Registration and more info
Economic Injury Disaster Loans
The SBA’s Economic Injury Disaster Loans are live. These loans are up-to-$2 million at 3.75% with favorable teams. What’s new is that the SBA streamlined its process and now offers now an up-front $10,000 grant against the loan.
Pandemic Unemployment Assistance Program
The CARES Act also included the Pandemic Unemployment Assistance program. This program expands who is eligible for Unemployment Insurance to those individuals who do not qualify for regular unemployment compensation and are unable to work because of COVID-19. This includes self-employed workers (including gig workers and independent contractors), part-time workers, and those with limited work histories. It also increases unemployment benefits and make them available for additional weeks to benefits. The State of Minnesota administers this program. It is awaiting guidance from the U.S. Department of Labor on how to implement the program and the expanded services will be available in the near future.
Minnesota DEED Emergency Loan Program
The Minnesota Department of Employment and Economic Development (DEED) Emergency Loan Program is now available. DEED has established a loan program to provide 0%, partially forgivable loans to small businesses affected by Executive Orders 20-04 and 20-08. For detailed eligibility requirements, application materials, and terms, visit the DEED website.
In addition, on March 30, DEED announced a new Minnesota Small Business Loan Guarantee. This program is currently enrolling participating lenders, and no loans will be issued directly by DEED. If you are currently seeking a loan, check back with the DEED website for participating lenders, or reach out to your current lender.
Need help deciding what’s right for you?
Free business consulting services are available through the City’s expanded Business Technical Assistance to address COVID-19. You can also contact the Minneapolis Small Business Team at (612) 673-2499 or [email protected].