Disaster Assistance for Small Businesses During the Corona Virus Outbreak
- Small Business Provisions in Coronavirus Aid, Relief, and Economic Security (CARES) Act
Minnesota District Office – U.S. Small Business Administration
Applying for Disaster Loans
Minnesota’s small businesses are now eligible for the SBA’s Economic Injury Disaster Loan Program and can apply online.
Forms to Fill Out FIRST
Here’s a list of documents you’ll need to provide to complete the application:
- SBA Form 5 or SBA Form 5C for sole proprietorships – SBA loan application
- IRS Form 4506T – Tax Information Authorization for the applicant, principals and affiliates.
- Complete copies of the most recent Federal Income Tax Return.
- SBA Form 2202 – Schedule of Liabilities.
- SBA Form 413 – Personal Financial Statement.
- SBA Form 1368 – Monthly sales figures
More Info on EIDL Loans
A couple of points to know about SBA Economic Injury Disaster Loans:
- EIDL loans of up to $2M are now available for small businesses and private non-profits
- Funds can pay fixed debts, payroll, accounts payable and other bills that can’t be paid because of the disaster’s impact.
- The current interest rate is 3.75% for small businesses, non-profit rate is 2.75%
- The terms can be extended up to 30 years to keep it affordable.
- These loans are only intended as working capital loans utilized to assist with impact caused by the coronavirus emergency efforts.
- Loan applications will be evaluated by SBA loan officers. Criteria includes:
- Credit history acceptable to the SBA
- Repayment abilities
- Eligibility – business must be headquartered in a declared state and suffered working capital losses due to the declared disaster (not a general downturn in business due to the economy or other reasons.
Info from SBA Partners and Sister Agencies
We will continue to share additional resources as they become available. This is by no means an all-inclusive list, but we hope it gives you a good starting point to get the help you need to deal with the crisis at hand.
Local Partner Info
- SBA Resource Partners are ready to help with no-cost, one-on-one business counseling regarding COVID-19.
- Entrepreneur Fund has COVID-19 Updates & Resources and offering 30-minute consult with a Lender or Advisor by email or phone.
- WomenVenture is open, ready to help and has created a COVID 19 Update Hub with details.
- Minnesota DEED has created a Covid 19 webpage with Minnesota specific information to help small businesses.
- WBDC/WBENC Covid 19 resources for Women Owned Businesses
Federal Program Info
- For information on all federal programs, visit www.usa.gov/coronavirus or https://www.usa.gov/espanol/coronavirus (en Español).
- The IRS has established a web page to help taxpayers, businesses and others affected by the coronavirus.
- The U.S. Department of Labor has resources to help workers and employers prepare for the COVID-19 virus, including use of Family Medical Leave
- New guidance outlines flexibilities that states have in administering theirunemployment insurance programs to help Americans affected by coronavirus.
Tax Payments Deferred Until July 15
The Treasury Department and IRS are extending the due date for Federal income tax payments due April 15, 2020, to July 15, 2020, for payments due of up to $10 million for corporations and up to $1 million for individuals – regardless of filing status – and other unincorporated entities. Associated interest, additions to tax, and penalties for late payment will also be suspended until July 15, 2020. More info is available here.
U.S. Small Business Administration (SBA) disaster loans now available
The COVID-19 pandemic has affected everyone in our economy, but we know small businesses have been particularly hard hit. That’s why Governor Walz requested an Economic Injury Disaster Loan declaration from the SBA earlier this week.
Now, online applications for these loans are open to Minnesota businesses at:https://disasterloan.sba.gov/ela/
A few more details:
- 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 years.
For more information visit the SBA’s Economic Injury Disaster Loan web page.
- SBA disaster loan information at https://disasterloan.sba.gov/ela/Information/Index
- Information for small businesses affected by coronavirus atwww.sba.gov/coronavirus
- All coronavirus-related federal government resources:www.usa.gov/coronavirus
- DEED’S COVID-19 information and resources for businessesCOVID-19 update page.