Rep. Grossell: Disaster assistance program available for small businesses

ST. PAUL - State Representative Matt Grossell, R-Clearbrook, urges Minnesota small-business owners who are facing economic hardship during the COVID-19 outbreak to seek relief through the U.S. Small Business Administration’s (SBA) Disaster Loan Assistance Program. Minnesota is among states where the federal SBA’s low-interest loans available to cover small-business operating expenses after a disaster declaration was issued.

"It is imperative we all follow the health and safety guidelines that have been given to us, not only for our own health but for the health of our neighbors as well," said Rep. Grossell. "These SBA loans should help to alleviate the burden so many of our small business owners are facing while we try to stay safe. My prayers are with you all, God Bless you and your families, stay healthy and safe."

The Minnesota Department of Employment and Economic Development (DEED) indicates 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 need including payroll, accounts payable, and fixed debt payments that can’t be paid due to the COVID-19 pandemic.

Long-term repayment options of up to a maximum of 30 years are available at 3.75% interest, and at 2.75% interest for non-profits. Businesses can defer payments for the first four months and it is recommended owners apply online at sba.gov/funding-programs/disaster-assistance.

Loans can be directly dispersed within three weeks. Businesses will need to gather their tax statements from last year, in addition to providing financial information to show current and expected business losses.

Questions can be directed to the SBA Hotline at 1-800-659-2955. More information from Minnesota’s DEED can be found at https://mn.gov/deed/.