March 25, 2020
News Release
Rep. Kiel: Emergency loan assistance available for small businesses
ST. PAUL - Minnesota has launched a new Small Business Emergency Loan Program with $30 million available to help Minnesota small-business owners who need immediate assistance amid COVID-19 closures. Rep. Deb Kiel, R-Crookston, said this new state program administered by the Minnesota Department of Employment and Economic Development will help bridge gaps that the federal Small Business Administration Disaster Loan Assistance Program may not address.
“Our small businesses are so important to our communities, and I am glad to see these new resources being offered to help the ones that are being hardest hit during this crisis,” said Kiel. “This is not the only solution, but I hope it will be a helping hand to businesses that need help staying afloat as we wait for more resources from the state and federal government.”
This program will provide loans of between $2,500 and $35,000 at a 0% interest rate for qualifying small businesses, a portion of which may be forgivable. These emergency loans will be made by an existing network of lenders DEED works with across the state. Depending on the size of the loans offered to businesses, DEED estimates this emergency loan program will provide needed resources to between 1,200 and 5,000 businesses. DEED indicates it expects loan applications to be available later this week. Minnesota small businesses should send questions about this emergency loan program to ELP@state.mn.us.
This program joins the Small Business Administration’s Disaster Loan Assistance Program, which Minnesota businesses became eligible for last week. That program provides low-interest loans of up to $2 million to small businesses at 3.75% interest, and private non-profits at 2.75% interest. These loans can go toward working capital to meet need including payroll, accounts payable, and fixed debt payments that can’t be paid due to the COVID-19 pandemic. Questions about the SBA program can be directed to the SBA Hotline at 1-800-659-2955.
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