Small Business Administration (SBA) Loans

    Small businesses in MN can now apply for the SBA Disaster Assistance Funds

    The declaration allows all Minnesota small businesses (according to SBA’s size standards) with a substantial economic injury related to COVID-19 to apply for loans of up to $2M. These loans can go toward working capital to meet needs including payroll, accounts payable, and fixed debt payments until the situation improves. Interest rates are 3.75% for small businesses and 2.75% for non-profits. Business owners are now able to apply for a loan at https://disasterloan.sba.gov/ela/Information/Index .

    Details include: 

    • Rates range from 2.75%-3.75% with terms up to 30 years. 
    • Loan proceeds may be used to pay fixed debts, payroll, accounts payable and other bills that could have been paid had the disaster not occurred. 
    • Loans under $25,000 can be made without collateral while loans over $25,000 should be collateralized. (However, the SBA will not decline a loan for lack of collateral.)
    • The applicant must have an acceptable credit history and ability to repay the loan, as determined by the SBA.
    • No cost to apply nor any obligation to accept the loan if approved. 

    The national call center is staffed seven days a week. Call them at 1-800-659-2955 (TTY/TDD: 1-800-877-8339) or email them at http://disastercustomerservice@sba.gov.

    The loan process can be found at the link below and turnaround time is approximately five days for review and the receipt of funds once the loan is approved takes approximately 3 weeks.

    Loan process: https://disasterloan.sba.gov/ela/Documents/Three_Step_Process_SBA_Disaster_Loans.pdf