St. Paul, MN -- Yesterday, Governor Walz signed Executive Order 20-15 to authorize the Minnesota Department of Employment and Economic Development (DEED) to establish a Small Business Emergency Loan program for small businesses affected by the COVID-19 pandemic. Minnesota’s small businesses and independent contractors are amongst the worst hit by the pandemic. DEED’s emergency loan program will help Minnesota small business owners who need immediate assistance during COVID-19 closures.
The program will make loans available of between $2,500 and $35,000 for qualifying small businesses. The loans will be 50% forgivable, and offered at a 0% interest rate. If other financing becomes available to small businesses that received an emergency loan, such as federal funding, the emergency loan must be repaid.
“Our small businesses serve as the cornerstone of our local communities and drive the economy of our state,” remarked State Representative Kristin Bahner (DFL- Maple Grove). “They make our communities strong and vibrant, especially in Maple Grove and Osseo. I applaud Governor Walz’s executive action to deliver emergency aid to our small business owners and independent contractors during this challenging time.”
These emergency loans will be made available 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 expects loan applications will available later this week through their lender network. Minnesota small businesses should send questions about this emergency loan program to ELP@state.mn.us.
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