ST. PAUL – State Rep. Joe McDonald, R-Delano, urges Minnesota small-business owners who are facing economic hardship during the COVID-19 outbreak to 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 are available to cover small-business operating expenses after a disaster declaration was issued.
“Small businesses are the backbone of our economy and right now the coronavirus outbreak is causing great strain for many of them,” McDonald said. “Each business has its own set of complex circumstances, so it’s important to have a variety of tools available to help their particular situation. Our state and federal governments may take action to provide other options and assistance, but the SBA’s program is something many local businesses can access right away to help take away some of the immediate uncertainty.”
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 needs 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/.