ST. PAUL – State Rep. Paul Anderson, R-Starbuck, urges Minnesota small-business owners who are facing economic hardship during the COVID-19 outbreak to seek relief through the U.S. Small Business Administration’s (SBA) Disaster Loan Assistance Program.
Minnesota is among states where the federal SBA’s low-interest loans are available to cover small-business operating expenses after a disaster declaration was issued.
“It’s going to take a combination of solutions for our businesses to overcome the challenges brought on by the coronavirus outbreak,” Anderson said. “The SBA loan program is one more tool small businesses have at their disposal as something to consider as they weigh their options. Everyone’s situation is different, but this program could give local business owners on a tight timeline a way to act now and address immediate concerns as they await further remedies to be developed the state and federal levels.”
The Minnesota Department of Employment and Economic Development (DEED) indicates this program can provide low-interest loans of up to $2 million to small businesses and private non-profits. These loans can go toward working capital to meet needs including payroll, accounts payable, and fixed debt payments that can’t be paid due to the COVID-19 pandemic.
Long-term repayment options of up to a maximum of 30 years are available at 3.75% interest, and at 2.75% interest for non-profits. Businesses can defer payments for the first four months and it is recommended owners apply online at sba.gov/funding-programs/disaster-assistance.
Loans can be directly dispersed within three weeks. Businesses will need to gather their tax statements from last year, in addition to providing financial information to show current and expected business losses.
Questions can be directed to the SBA Hotline at 1-800-659-2955. More information from Minnesota’s DEED can be found at https://mn.gov/deed/.
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