A loan program has been established to assist Minnesota-based businesses that were directly and adversely affected by the issuance of Executive Orders 20-04 and 20-08 (the temporary closure of bars, restaurants, and other places of public accommodation).
The interest-free loans will range from $2,500 to $35,000 and be based on economic injury and financial need. The loans are to be paid back monthly over five (5) years with the first payment being deferred six months with the potential for partial forgiveness.
To qualify, the businesses must:
- Be current on financial obligations as of March 1, 2020
- Be an existing small business (whatever the form of their organization)
- Have been operating in Minnesota for at least one year
- Be willing to provide collateral or personal guarantee for at least 20% of loan
- Have been denied credit by a lender and have sought or be in the process of seeking, SBA Economic Injury Disaster Loan assistance.
- Pay-off the emergency loan if financing is received subsequent to loan approval.
Loans cannot be provided to businesses that:
- Derive income from passive investments without operational ties to operating businesses
- Generate any part of its income from gambling or adult-oriented activities
- Have no current or historical financial statements
For additional information including how to apply, please see the following: https://mn.gov/deed/business/financing-business/deed-programs/peacetime/
We will keep you up-to-date with the latest information via our COVID-19 Information Hub webpage. Please contact your Lurie advisor with any questions regarding this guidance.