On March 20, it was announced that an SBA economic injury disaster loan declaration has been made for the state of Minnesota. The declaration made Economic Injury Disaster Loans (EIDL) accessible to Minnesota businesses and nonprofits during these challenging times.
Economic Injury Disaster Loans (EIDL) are meant to help sustain businesses and organizations amid economic hardship. The loan program is administered directly through SBA and not from any bank; therefore, the only application businesses and organizations need to fill out for a loan is the one provided by SBA. Applicants will be asked to initially apply for 3 months of operating expenses, including but not limited to, payroll, supplies and other operational needs. This does not include physical repairs.
Both small businesses and non-profit organizations can apply for these loans. Loans up to $25,000 can be applied for without collateral. Any loan above $25,000 requires collateral; however, SBA recognizes the reality of the economy and a lack of collateral will not be a single disqualifier for the application. The interest rate for small businesses is 3.75% and 2.75% for non-profits. These loans are for a 30 year term, but may be paid off sooner with no penalty.
Additionally, the Minnesota District Office of SBA has already begun hosting webinars about EIDL. These training sessions will be ongoing and more details can be found at www.sba.gov/mn. It is encouraged to take advantage of these short and to-the-point sessions.
Information on EIDL, the application portal, training sessions, and more can be found at: Coronavirus (COVID-19): Small Business Guidance & Loan Resources. The portal to apply for EIDL will be available shortly at https://disasterloan.sba.gov/ela/ and it is encouraged you sign up for SBA’s newsletter here SBA.gov/updates. The Minnesota District Office for SBA can be reached at Minneapolis.firstname.lastname@example.org or via phone at 612-370-2324.
Additionally, Representative Angie Craig is working on legislation to establish a temporary guaranteed loan program administered by SBA-approved banks and other lenders to provide small business owners capital to pay off or refinance existing debt, provide employee benefits, pay employee wages and related taxes, and acquire technological and other resources that enable continuity of operation.