SBA Loans and MN DEED Loans Available NOW for Small Businesses
The U.S. Small Business Administration (SBA) announced that small businesses are now eligible to receive Economic Impact Disaster Loans from the SBA in all 50 states and the U.S. territories. A “small business” also can include small agricultural cooperatives and most private nonprofit organizations.
These loans are available to provide the necessary working capital to help small businesses survive until normal operations resume after a disaster. This includes payment of expenses such as payroll, lease payments, vendor payments, and other bills.
Here are 5 things you need to know about the SBA loans:
- The maximum loan amount is $2 million.
- Applications are made directly with the SBA.
- Terms can be up to 30 years.
- Loans $25,000 or less will have no collateral requirement.
- The loan application deadline date will be December 21, 2020.
Also, as of Monday, March 23, 2020, the Minnesota Department of Employment and Economic Development (DEED) created an emergency loan program for Minnesota’s small business owners impacted by the state’s closures due to COVID-19. A total of $30 million has been made available through the emergency program.
The loan funds are intended to support small business owners who need immediate assistance to meet their families’ basic needs.
Here are 5 things you need to know about the emergency MN DEED loans:
- Loan amounts will be between $2,500 and $35,000.
- The loans will have a 0% interest rate.
- Up to 50% of the MN DEED loan may be forgivable.
- Loans will be made through existing DEED lenders across Minnesota.
- Applicants must supply historical financial information for the business and some applications will require a personal financial statement for each owner who holds at least a 20% interest in the business.
The W&H team is prepared and available to assist you with your SBA applications, your existing SBA loan, or applications for a Minnesota DEED loan. We are here to answer any questions and to provide assistance with any other needs you may have. Please contact Morgan Kavanaugh or Christopher Johnston for more information.