Today, I am urging local 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 available to cover small-business operating expenses after a disaster declaration was issued.
Local, small businesses are facing an uncertain future as they deal with the economic hardships associated with the COVID-19 outbreak. While the loans likely won’t be able to cover the entirety of losses, they will certainly help. Please be sure to support small businesses and buy local whenever possible.
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/.
Thanks, and have a good day,