Minnesota has now been declared a disaster area for COVID-19 and you may apply for the economic injury disaster loans directly with the SBA. If you would like help with the application paperwork reach out to a consultant in your geographic area for assistance. Our web page at https://www.nesbdc.org/about-us/locations/ will tell you whom to contact or call 218-348-2830.
You apply for these loans directly at: disasterloan.sba.gov.
Details of the Loan
The U.S. Small Business Administration (SBA) is offering low‐interest federal disaster loans for working capital to small businesses suffering substantial economic injury as a result of Coronavirus (COVID‐19). This program is for small businesses and most non‐profit organizations that have suffered directly by this disaster. The applicant must have an acceptable credit history (as measured by SBA), and the ability to repay the loan. Rates range from 2.75‐3.75% with terms up to 30 years. Loans can be for up to $2 million and are based on the working capital need of the business.
Loan proceeds may be used to pay fixed debts, payroll, accounts payable, and other bills that could have been paid had the disaster not occurred. Loans under $25,000 can be made without collateral, loans over $25,000 should be collateralized. However, the SBA will not decline a loan for lack of collateral.
There is no cost to apply and no obligation to take the loan if approved.
Spread helpful information
In a crisis, misinformation can spread quickly as people are thirsty for news and rumors spread fast. We need to counter that by letting people know exactly what’s going on, and what resources are available for help. Here are some links to share with the business and civic community:
- If you’re a business or a worker who has general questions about how COVID-10 affects business, consult our information page: https://mn.gov/deed/newscenter/covid/
- If you want to know what state government has to offer businesses so far, check this page: https://mn.gov/deed/newscenter/press-releases/?id=423790
- If you’re a small business who needs to take out a disaster loan from the SBA, learn how to apply: https://mn.gov/deed/newscenter/press-releases/#/detail/appId/1/id/424149
- If you’re a business or a worker who has questions about how unemployment insurance works, consult https://mn.gov/deed/newscenter/press-releases/?id=423352
- If you’re going to apply for unemployment benefits, APPLY ONLINE. Phone lines are jammed and have long wait times. The URL iswww.uimn.org
- For information on delaying your sales and use tax payments see https://www.revenue.state.mn.us/sales-and-use-tax
And of course, the most important overall message is to #StayHomeMN