If you are a business and you are impacted by COVID 19 pandemic, here are some funding opportunities available. We encourage you to apply for financing via these funding sources. These programs can help you with payroll and rent, and most have clauses where loans may be forgiven if the money is used for these purposes.
The stimulus package also allows the self-employed and contract workers to apply for the un-employment benefits. Here are the loan programs for the small businesses.
- SBA Disaster Loan Programs (All Businesses Should Qualify). Up to $2 million in funding at 3.75%. The loan also has a $10,000 advance payment that can be made available within 3 days that does not need to be repaid. Application is a simple process and you don’t need to go through the paper trails. Application: https://www.sba.gov/page/disaster-loan-applications. Minnesota Specific FAQ and Help Page: https://www.sba.gov/content/sba-disaster-loans-minnesota-small–impacted-covid-19.
- PPP CARES Act Loan Program (Federal Government Stimulus Bill) (All Businesses Should Qualify). This program is not yet live but should be this week. So, you need to keep your eyes on. This is the loan program that the Federal Government has put together. Note, a business cannot apply for COVID19 related relief from both the SBA disaster loan and the PPP Cares act. However, if you already have an SBA loan for another purpose, you can apply for a Cares Act. This article summarizes the funding amount and requirements. The federal government program has already gone live. Here is the link to the application. Two main points:
- Any small business is eligible. To clarify, need to apply via their bank, there is not an online application. Applications can begin processing on Friday, April 3rd.
- SBA will forgive loans if all employees are kept on the payroll for eight weeks and the money is used for payroll, rent, mortgage interest, or utilities. Payments are deferred for 6 months at a .5% (basically zero) interest rate.
- MN DEED Disaster Loans (Some Will Qualify). This is the quickest access to money quickly, but has stricter eligibility guidelines as it only applies to business that were impacted by Gov. Waltz orders to close. Please apply if you qualify. Loans can be between 2,500 to $35,000. Loans are interest free and can be paid back monthly over five (5) years and the first payment will be deferred six (6) months. Should be up to 50% forgivable.
- More information and application, follow this link here.
- Apply for unemployment benefits if your employment has been affected by the COVID19. Link to recent stimulus package.
- Self-employed or contract workers? Here is the info how to complete the application: Follow this link here.
If you have lost your job and income due to the COVID19 pandemic, many banks are providing deferral programs, waiving late fees, suspending foreclosures, and promising not to report missed payments to credit bureau agencies. Find out how your bank is willing to help. If your bank (or credit union) is not on this list, call a representative to discuss your options.
YOU NEED TO CONTACT YOUR BANK. They are not taking any action. The phone lines may be jammed now due to enormous amount of calls. Surely, your bank has online banking and feature called Message Center where you could send the message to the bank. Here is a link to find more info about your options.
The above contents is provided by the Association of Nepalis in Minnesota (ANMN), PO Box 201453, Bloomington, MN 55024.