In response to the growing number of Minnesota small business owners who are struggling to keep afloat amid the reaching impacts of COVID-19, the Minnesota Department of Employment and Economic Development (DEED) announced the creation of an emergency loan program that will provide immediate relief to those businesses and their owners.
“Now more than ever, we’re looking to creative solutions like DEED’s emergency loan program to help small businesses weather these extraordinarily difficult times.”
“Over the last week, we’ve heard from many of Minnesota’s small businesses who are facing significant hardships because of the COVID-19 crisis,” said Governor Tim Walz. “Small businesses are the backbone of our communities, and now more than ever, we’re looking to creative solutions like DEED’s emergency loan program to help them weather these extraordinarily difficult times.”
The program was created under the Small Business Assistance Executive Order 20-15 which was announced by Governor Tim Walz this past Monday. It is intended to help businesses temporarily closed under Executive Orders 20-04 and 20-08 announced last week that called for the shut down of all onsite customer dining at restaurants and bars.
“We know that this emergency loan program is just one tool businesses will need to leverage to stay afloat,” said DEED Commissioner Steve Grove. “It’s an important one because it will get cash flowing quickly to the small Minnesota businesses that need it most.”
DEED estimates between 1,200 to 5,000 small businesses in Minnesota will be able to receive financial assistance.
DEED’s emergency loan program is supported by $30 million from special revenue funds. They estimate between 1,200 to 5,000 small businesses in Minnesota will be able to receive financial assistance through the emergency loan program depending on the size of the loans being offered—anywhere from $2,500 to $35,000. The loans themselves are 50% forgivable and offered at a 0% interest rate, and will be made by an existing network of lenders across the state that work with DEED.
The Small Business Assistance Executive Order 20-15 also allows local units of government or lending partners to issue loans to retail and service providers in the next 90 days. DEED estimates up to $28 million in capital could be accessible for businesses through local revolving loan funds and local governments in this way.
Additionally, small businesses can also apply for disaster relief loans through the Small Business Administration’s (SBA) Disaster Relief Program. More information on the program and how to apply can be found on our website here.
SBA Disaster Relief Info