2020-04-29 EDA Packet - Laserfiche WebLink

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SBA Loan Payment Deferrals The CARES Act passed provides a 6-month debt forgiveness to the borrower for all 504, 7a, Community Advantage, Microloan borrows and Disaster Loans from the SBA. DEED Small Business Emergency Loan Program ***Note this fund is no longer taking applications unless there are additional appropriations*** DEED is offering emergency loans for small businesses that closed directly or indirectly from the businesses are eligible for loans from $2,500 to $35,000. Loans are zero interest, must be paid back monthly over five (5) years and the first payment will be deferred six (6) months with potentially partial forgiveness. https://mn.gov/deed/business/financing-business/deed-programs/peacetime/ DEED Small Business Loan Guarantee Program This loan program helps employers that may not have been eligible under the DEED Small Business Emergency Loan Program. DEED is not the lender, but it will work with lenders throughout the state to use the loan guarantees to support small business loans. These loan guarantees will facilitate loans for a variety of purposes and can be subordinate to other financing. Allowable loan uses must be exclusively in Minnesota and include machinery or equipment purchases, maintenance, or repair; expenses related to moving into or within Minnesota; and working capital when the working capital is secured by fixed assets when possible. The program will provide an 80% guarantee up to a maximum of $200,000, therefore the maximum loan amount in the loan guarantee program would be $250,000. The program is only employers with less than 250 employees are eligible. https://mn.gov/deed/business/financing-business/deed-programs/loan-guarantee/#2 Entrepreneur Fund Businesses with a current EF loan can sign up for a free consulting session as a starting point. Additionally, the Entrepreneur Fund has developed the Small Business Relief Fund to support businesses in our region hard hit by the Coronavirus pandemic. Funding will allow EF to provide financial grant assistance to business owners who are facing significant challenges but do not qualify for local, state or federal relief. Find out more at https://www.entrepreneurfund.org/entrepreneur-fund-approach-to-covid-19/ Bank Loans A majority of banks or credit unions have established new loan programs or are offering laxed repayment options on existing loans for both personal and business loans. Contact a local bank partner to see what assistance is available. The American Bankers Association has pulled together a list of banks that are offering special assistance at this time. This is updated daily. https://www.aba.com/about-us/press-room/industry-response-coronavirus#AlphaV Updated 4-24-2020