The coronavirus pandemic represents an unprecedented public health and economic challenge.
The Federal Small Business Administration (SBA), Minnesota Department of Employment and Economic Development (DEED), and the City of Minneapolis have all established relief programs over the past several weeks. These programs are set up to support small businesses, independent contractors and self-employed people, and non-profit organizations.
Here’s an overview of the programs and how to access them:
- The federal SBA Payroll Protection Program (PPP) offers forgivable loans for up to 2.5 months of payroll expenses for business who keep their employees and spend at least 75% of the loan amount on payroll. Businesses can access the PPP through eligible banks.
- The SBA Economic Injury Disaster Loans (EIDL) offer long-term loans up-to-$2 million at 3.75% with favorable terms. This program also includes an up-front $10,000 grant against the loan. Businesses should apply directly to the SBA.
- The Pandemic Unemployment Assistance program that covers those who do not qualify for regular Unemployment Insurance benefits, such as independent contractors and self-employed people. The Minnesota Unemployment Insurance office is developing this program now, and instructions are available to begin your application.
- DEED has launched a Minnesota Small Business Emergency Loan program, offering interest-free loans of $2,500-$35,000 for businesses impacted by the Governor’s temporary closure orders (Executive Orders 20-04 and 20-08). These loans can be partially forgiven over time. Businesses should apply through one of the states approved lenders. For small businesses seeking to secure private loans, including those not eligible for the emergency loan program, the state has also created a Loan Guarantee Program to help businesses secure those loans.
- The City of Minneapolis has developed a $5,000-$10,000 Forgivable, No-Interest Loan for small businesses and self-employed workers with fewer than 20 employees or under $1 million in revenue and located in certain parts of the city. Businesses can check their eligibility and complete an application online. Materials will be posted in Somali, Spanish, and Hmong later today. The deadline to apply for this fund is Monday, April 20 at 12:00 p.m. (Noon).
To stay up to date as new information is available
- MN DEED has an excellent guide to the federal and state programs above.
- Visit the City’s Coronavirus website and review the FAQs for business.
- Join a weekly conference call with the office of Mayor Frey at Noon each Friday. You can also submit your questions in advance online.
- Subscribe to the Launch. Grow. newsletter for small businesses
All this information may feel overwhelming right now, but you do not have to navigate it alone. The City of Minneapolis has expanded our Business Technical Assistance Program services to make sure that you have an expert to talk to about your specific situation, and you can always contact the City’s Small Business Team at 612-673-2499 or [email protected].