US SBA and MN DEED offer COVID-19 Small Business Emergency Loans
The SBA released a brand-new Form EZ for certain PPP borrowers to use to apply for forgiveness. The SBA also made borrower-friendly revisions to the initial forgiveness application. These changes are intended to make the application process easier on borrowers and to increase efficiency for lenders and borrowers alike.
The new EZ application, which you will want to use if you are eligible, requires fewer calculations and less documentation than the revised forgiveness application. To see if you qualify, go to page 1 of the instructions to the EZ. If you can check one of the three boxes at the top, you can use form EZ.
SBA REOPENS EIDL DISASTER LOAN PORTAL TO ALL:
SBA has reopened the Economic Injury Disaster Loan (EIDL) and EIDL Advance program portal to all eligible applicants experiencing economic impacts due to COVID-19. Important points to consider are:
• EIDL assistance can be used to cover payroll and inventory, pay debt or other expenses. The interest rate is 3.75% for small businesses, 2.75% for non-profits and the term is for up to 30 years.
• The EIDL Advance can provide up to $10,000 ($1,000 per employee) in emergency funds to businesses that do not have to be repaid.
• SBA’s EIDL and EIDL Advance are just one piece of the expanded focus of the federal government’s coordinated response.
• Forgiveness is automatic on an EIDL Advance and if a borrower got both an EIDL Advance and PPP loan, the EIDL Advance is deducted from the forgivable amount of a PPP loan.
MN DEED LOANS:
This temporary program, established in response to the 2020 public health emergency, will help Minnesota lenders provide capital to small businesses in Minnesota affected by COVID-19. These loans can be used 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.
Woodlands National Bank is not a lender, but participating lenders and additional information can be found at the DEED website: https://mn.gov/deed/business/financing-business/deed-programs/loan-guarantee/
SBA shares additional information as it becomes available via their newsletter. Sign upat www.sba.gov/updates.
The SBA Minnesota District Office will also be posting information on Twitter(@SBA_Minnesota) as it becomes available.
For more on SBA programs for the coronavirus, please visit www.sba.gov/coronavirus.
For information on all federal programs, visit www.usa.gov/coronavirus.
ADDITIONAL RESOURCES (links located by clicking underlined titles below)
Minnesota Department of Employment and Economic Development COVID webpage with Minnesota specific information.
New guidance outlines flexibilities that states have in administering their unemployment insurance programs to help Americans affected by coronavirus.
SBA Local Assistance website to find technical assistance providers in your area.