Small Business Assistance Guide
Over the past few weeks, several state and federal programs have been built to assist small businesses struggling during the COVID-19 pandemic.
If you have issues with your application, or questions about whether your business is eligible for a program, please contact DEED using the resources available on their website for the fastest and most accurate answers. In addition, programs passed by the federal government may not yet be available — please keep checking the federal program websites for updates.
Different programs make sense for different businesses, so DEED is providing this summary guide to help small businesses quickly see which programs might be right for their situation.
These include:
- SBA Economic Injury Disaster Loan (EIDL) – all Minnesota small businesses should apply for these!
- Summary of Program: Low interest, long term Economic Injury Disaster Loans for up to $2 million: The first payment is deferred for 12 months. The application has been simplified and can be completed 100% online through our improved web portal at www.sba.gov/disaster. These loans may be used to pay fixed debts, payroll, accounts payable and other bills that can’t be paid because of the disaster’s impact. The interest rate is 3.75% for small businesses. The interest rate for non-profits is 2.75% and the loans can be extended over 30 years.
- SBA Paycheck Protection Program (PPP)
- Summary of Program: The SBA PPP is a new federal $350 billion loan program at SBA for small businesses, self-employed people, and gig workers to help them from going under due to the COVID-19 pandemic. If employers maintain payroll, the loans would be forgiven.
- Pandemic Unemployment Assistance Program
- Summary of Program: Congress authorized a new Pandemic Unemployment Assistance program that covers those who do not qualify for regular Unemployment Insurance benefits, such as independent contractors and self-employed people. The program was authorized but must be created by the states, so Minnesota must build out this program before it can be implemented. More information will be available soon, however it could be several weeks before payments begin.
- Minnesota Small Business Emergency Loan Program
- Summary of Program: Minnesota Small Business Emergency Loans are made through an approved lender – you can find FAQs, application materials and lenders on the DEED website. These loans are for $2,500 to $35,000 and at a 0% interest rate. There is a total of $30 million available for this program.
- Minnesota Small Business Loan Guarantee Program
- Summary of Program: This program provides a 80% loan guarantee for loans up to $250,000 made by a qualified economic development lender within this program. Details for business are not yet on DEED’s website but DEED and agency partners are reaching out to lenders to make them aware of this new program – look for more details soon. This program is intended to incent the private market to make loans to small businesses and provides the guarantee for those loan dollars. The state is providing a loan guarantee of $10 million which is likely to leverage between $20 and $25 million in lending by private banks.
- Unemployment Insurance Shared Work Program
- Summary of Program: The Shared Work program offers an alternative to layoffs for employers facing a temporary downturn in business. Administered by DEED’s Unemployment Insurance Division, the program allows employers to divide available hours of work among a group of employees instead of implementing a full layoff. These employees may then receive partial unemployment insurance benefits while working reduced hours. The purpose of Shared Work is to avoid a layoff, not to subsidize wages.
For more information on any of these programs, visit the DEED website here.
Highway 14 Progress
MnDOT recently passed on some exciting information on the progress being made on the Highway 14 project connecting Rochester and Mankato. A project that has been going on long before many of us, including myself, were born!
We will have some delays and detours through our community during this final construction but the construction will be complete by 2022 with traffic on the new Highway 14 in 2021.
Full MnDOT Release: CLAREMONT, Minn. – Construction crews are expected to begin demolition of buildings and removal April 6 as part of the expansion of Hwy 14 between Dodge Center and Owatonna. The work will briefly delay the planned detours for motorists in Dodge County, according to the Minnesota Department of Transportation.
The project team has reprioritized the removal and disposal buildings and debris at 12 property sites on the new route, which will then keep Dodge County Road 1 and 630th Street open longer. The roads had originally been scheduled to close April 8, but are expected to close later in April or early May, so crews can begin to build a bridge on Dodge County 1 for an overpass of new Hwy 14 and build a new 630th Street.
MnDOT road work has been identified as a critical service in Governor Walz’s Stay at Home executive order and will continue. The agency is working to be flexible with scheduling during this period of lower traffic volumes to keep projects moving forward in a timely manner. Following guidance from state health officials and to prevent further spread of COVID-19, crews will maintain social distancing practices while working.
When detours begin, motorists on Dodge County Road 1 and 630th Street will find detours south of Claremont and should follow signs to access their destinations. Grading work west of Claremont is also expected to begin.
The project will expand 12.5 miles of Hwy 14 from two lanes to four lanes between Dodge Center and Owatonna to complete a continuous four-lane road between Mankato and Rochester. The project is intended to improve the capacity, safety, travel times and access between Rochester and Owatonna, as well as the I-35 corridor. The expansion area is a new route for Hwy 14, which will stay south of the railroad tracks on the west side of the project, travel south of Claremont and connect where the four-lane highway is west of Dodge Center
Shafer Contracting of Shafer, Minn., is the prime contractor for the $107,997,119 construction project.
Construction is scheduled to be completed by 2022. Traffic on the new Hwy 14 route is expected in 2021.
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