Below is information about various Minnesota programs available to assist businesses affected by the pandemic. Find more details on the State of Minnesota website: https://mn.gov/deed/newscenter/covid/employers/
Minnesota Small Business Emergency Loan Program
- Summary of Program: Minnesota Small Business Emergency Loans are made through an approved lender – you can find FAQs, application materials and lenders on the Minnesota Department of Employment and Economic Development (DEED) website. These loans range from $2,500 to $35,000 at a 0% interest rate. There is a total of $30 million available for this program.
- Why this might make sense for you: If you are affected by Executive Orders 20-04 and 20-08, this program could provide a 0% loan to help you meet expenses.
Minnesota Small Business Loan Guarantee Program
- Summary of Program: This program provides a 80% loan guarantee for loans up to $250,000 made by a qualified economic development lender within this program. This program is intended to incent the private market to make loans to small businesses and provides the guarantee for those loan dollars. The state is providing a loan guarantee of $10 million which is likely to leverage between $20 to $25 million in lending by banks. You can find details for this program on DEED’s website.
- Why this might make sense for you: Your lender will consider your situation and may require this guarantee in order to lend money to your business.
Unemployment Insurance Shared Work Program
- Summary of Program: The Shared Work Program offers an alternative to layoffs for employers facing a temporary downturn in business. Administered by DEED’s Unemployment Insurance Division, the program allows employers to divide available hours of work among a group of employees instead of implementing a full layoff. These employees may then receive partial unemployment insurance benefits while working reduced hours. The purpose of Shared Work is to avoid a layoff, not to subsidize wages.
- Why this might make sense for you: Shared Work can help employers avoid the difficulties that can go along with a layoff. If employees keep working during a temporary slowdown, employers can more quickly gear up when business conditions improve. Learn more about the Shared Work Program on the Unemployment Insurance Division’s website.