Business Assistance with the City of Minneapolis
The City offers resources and step-by-step help for people who want to start, maintain or expand a business in the city. Visit their website.
1. SBA Economic Injury Disaster Loan (EIDL)
These are low interest, long term Economic Injury Disaster Loans for up to $2 million: The first payment is deferred for 12 months. The application has been simplified and can be completed 100% online at www.sba.gov/disaster. These loans may be used to pay fixed debts, payroll, accounts payable and other bills that can’t be paid because of the disaster’s impact. The interest rate is 3.75% for small businesses. The interest rate for non-profits is 2.75% and the loans can be extended over 30 years.
Why this might make sense for you: The SBA EIDL can be used to maintain payroll, provide paid sick leave, meet increased costs, make rent or mortgage payments, as well as repay unmet expenses and obligations.
2. SBA EIDL Grants
Businesses applying for the above SBA EIDL loan can request up to $10,000 be disbursed immediately. The amount need not be repaid, regardless of the loan decision. The form to apply for an advance is part of the new EIDL application. If you have already applied for an EIDL Loan and wish to apply for the advance, please fill out the new at www.sba.gov/disaster.
Why this might make sense for you: This advance may be available even if your EIDL application was declined or is still pending, and will be forgiven.
3. SBA Paycheck Protection Program (PPP)
The SBA PPP is a new federal $350 billion loan program for small businesses, self-employed people, and gig workers to help them from going under due to the COVID-19 pandemic. If employers maintain payroll, the loans would be forgiven.
Why this might make sense for you: If a self-employed person needs compensation or a business or nonprofit needs funds for employee compensation, including salaries, wages, commissions, or similar compensation; cash tips or equivalents; vacation, parental, family, medical, or sick leave; payment required for providing group health care benefits (including insurance premiums); payment of retirement benefits; and payroll taxes. Funding may also be used for payment of interest on mortgage obligations, rent, utilities, and interest on pre-existing debt obligations.
This new Forgivable No-Interest Loans for Small Business will come in fixed amounts of $5,000 or $10,000, depending on need resulting from the COVID-19 emergency. Businesses must be located in a designated area of Minneapolis and have 20 or fewer employees and/or $1 million or less in annual revenue. Immigration status does not impact eligibility.