Online applications for these loans are now open to Minnesota businesses at: https://disasterloan.sba.gov/ela/

Here are a few more details about the SBA loans:

  • This program can provide low-interest loans of up to $2 million to small businesses and private non-profits
  • These loans can go toward working capital to meet needs including payroll, accounts payable, and fixed debt payments that can’t be paid due to the COVID-19 pandemic
  • The current interest rate is 3.75% for small businesses.  The non-profit rate is 2.75%
  • These loans have long-term repayment options, up to a maximum of 30 year

The SBA is doing webinars THIS WEEKEND to explain the program in more detail, you can sign up to attend here:

If you didn’t have a chance to attend a webinar this weekend, here are some key takeaways:

  • A SBA officer will determine the approved loan amount for the applicant business.  The business can then decide if they want to accept the loan, decline the loan, request a smaller loan, or request a larger loan (will likely require additional information to be provided to the SBA case manager)
  • It does not sounds like this loan will be forgivable, even if the business goes out of business
  • It can take up to three weeks to hear back once you have completed the application process
  • Personal financial statement (SBA Form 413) needs to be submitted for any owner with 20% or more ownership in the company

For more information visit the SBA’s Economic Injury Disaster Loan web page.  You can also download the three step process for disaster loans information sheet.