Itasca Economic Development Corporation Funding Relief Efforts
At Itasca Economic Development Corporation, we are dedicated to providing you with all of the information that your small business needs to make it through any storm. The Cornavirus Pandemic will not stop us from assisting you with any of your business commitments. One of the main questions on the forefront at this time is, "How can we financially make it through this economic disaster?" We may not have all the answers, but we can help you find them.
Small Business Financial Side-By-Side Comparison
Itasca Economic Development, APEX, CEDA and SBDC have been working hard to provide you with the best tools for you to use as a reference as Small Business Owners. One of the most helpful, is the Small Business Financial Side-By-Side Comparison Tool. This tool was created to help you compare federal, state, and local programs available to small businesses and non-profits. This information is ever changing and adapting. Please be sure to check back often to ensure you are viewing the most up to date and current information.
For the full copy, please click here.
Minnesota DEED Grant Program
Minnesota Small Business Relief Grants Program will be accepting applications beginning Tuesday, June 23 and close on 5:00 p.m. Thursday, July 2nd!
“This program will provide $10,000 grants to small businesses that have been impacted by the COVID-19 pandemic. Businesses with 50 or fewer full-time employees are eligible. Half of the funding will go to businesses in Greater Minnesota and half to businesses in the seven-county Twin Cities metro area, as required by law.”
• DEED has offered SBDC assistance with completing the application.
• Non-profits are not eligible.
• Home based businesses are ineligible except for childcare providers.
• If applicant has received the SBEL they will not be eligible.
To be eligible, businesses must have a permanent physical location in Minnesota and be majority owned by a permanent resident of Minnesota. Businesses must be able to demonstrate hardship as a result of the COVID-19 outbreak.
Additional requirements include:
• $18 million for businesses with six or fewer full-time employees
• $10 million for minority business enterprises
• $2.5 million for veteran-owned businesses
• $2.5 million for women-owned businesses
• $2.5 million for operators of indoor retail and food markets with an ethnic cultural emphasis
There will be a total of $60.3 million grant awards available. A randomized, computer-generated lottery process will be used to select eligible businesses that will receive awards. All awards will be administered by qualified local and regionally based nonprofit agencies, and the grant funds can be used for working capital to support payroll expenses, rent, mortgage payments, utility bills, and other similar business expenses.
Additional eligibility requirements and application information can be found online at DEED’s Small Business Relief Grants page.
Save Small Business Fund
The US Chamber of Commerce Foundation is offering a new grant…
- The Save Small Business Fund is a collective effort to provide $5,000 grants to as many small employers as we can. We hope these supplemental funds will help you get through the next days and weeks.
- A short application will go live on this page on April 20, 2020, at 12:00PM PT. If you’d like a reminder, please sign up with your email address below and you will be notified.
- Employ between 3 and 20 people
- Be located in an economically vulnerable community
- Have been harmed financially by the COVID-19 pandemic
Taconite Area Business Relief Program
- Businesses located within the Iron Range Resources & Rehabilitation service area are eligible to apply for 2% interest loans of up to $40,000 to be used as working capital or any legal purposes.
- No repayment on the loans will be due for the first six months.
- Followed by 60 monthly payments of principal and interest.
- Eligible businesses must have been in operation for at least one year and operating on March 1, 2020.
- Applicants must intend to re-open if currently closed due to the pandemic. It is anticipated that this program could assist approximately 200 local businesses.
Click here for loan guidelines.
IEDC Small Business Relief Loan
Itasca County Economic Development Corp has spearheaded a fund to provide relief to small businesses to make it through the Covid-19 pandemic and preserve the small businesses that make up the vitality of our Itasca County communities. However, we have recently put our application process on pause!
We want to thank you for your interest in the Itasca Small Business Relief Fund Loan Program. It has been amazing to give back to our community in such a substantial way during this crisis. It was only possible through the hard work of our board, team and partners that we were able to accomplish so much.
Due the limited amount of resources available in our fund, effective immediately, we will PAUSE the portal and accept only applicants for a waiting list moving forward. We will continue to process applications currently in the system.
Please reach out to Rob Sjostrand if you are interested in being added to our waiting list. We are in the process of pursuing alternate funding sources and hope to reopen our application portal again in the future.
The purpose of this fund is:
• To prevent permanent closure of Itasca County businesses during and after the pandemic.
• To restore affected businesses back to financial health as quickly as possible.
• To recycle funds to continually help those in need.
• To have a fund that takes on risk above and beyond existing resources.
• To leverage other local, regional, state, and federal resources to get businesses back on their feet.
• To provide funds in a quick, efficient manner that would target a 2-week process from application to distribution.
This is a loan with expected repayment.
However, it is designed to maximize cash flow for distressed small businesses that can go to a small business’ bottom line. This would ultimately enable and encourage refinancing from a bank or non-bank lender and make funds available for others.
- Up to $25,000
- Initial 6 month deferral period for principal.
- 10 year amortization with a 5 year ballon
- 0% interest rate
- Businesses in Itasca County
- Business affected by the COVID-19 virus (all businesses; not only those included in the executive order)
- Be current on financial obligations as of March 1st, 2020
- Be an existing small business
- Must apply for SBA Disaster Loan Fund as well as the ISBRF
- Entrepreneur Fund Loan Application
- Two years of:
- Business Tax Returns
- Personal Tax Returns
- Personal Financial Statement
- Narrative Document that includes:
- What changes the business has made to stay viable during the pandemic
- Plans to get through the pandemic - work plan & simple cash flow forecast
- What your business looks like post-pandemic. Define your plans for a new normal
GREDA Working Capital Loan Program
The Grand Rapids Economic Development Authority (GREDA), in partnership with the Blandin Foundation, recognizes the difficult times our local businesses are facing during the COVID-19 Pandemic. To assist those businesses most impacted, GREDA is offering Working Capital Loans of up to $15,000. These loans will carry a 0% interest rate with repayment through 60 equal monthly installments beginning the seventh month after disbursement. A Promissory Note will secure all loans. All loans made under the Emergency Working Capital Loan Program will be subject to the terms and conditions of this application and GREDA’s Emergency Working Capital Loan Policy.
- GREDA Working Capital Loan Program Policy
- GREDA Working Capital Loan Program Application
- Cover Letter for Mailed Application
SBA is working hard to keep things moving in the right direction for small business owners during this extremely difficult time.
List of SBA Lenders
For an entire list of SBA Lenders in Itasca County, please click here.
List of Contacts
SBDC consultant, Rob Sjostrand wants you to begin by starting conversations with those who would be a resource to you. Sometimes, asking important questions is the best way to start your conversations. However, you might not know who to take your questions to. We have provided a list of contacts for you to begin.
Disaster Declaration Updates
The Disaster Declaration has now been approved in the state of Minnesota. This means that small businesses in Minnesota can now apply for SBA Disaster Assistance Funds.
Depending on the SBA's size standards, small businesses can now apply for loans up to $2 Million if they have experienced economic hardships from the COVID-19 Pandemic. These loans can help small businesses pick up the pieces in areas like payroll, accounts payable and fixed debt payments until the current situation improves. We believe that this is a great resource for all small businesses.
You can fill out the application at no cost on your own, but our team encourages you to come in so that we can assist you!
Additional SBA Resources
Please click the following links for more information
Paycheck Protection Program (PPP)
The Paycheck Protection Program is a loan designed to provide a direct incentive for small businesses to keep their workers on the payroll. 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.
This program is for any small business with less than 500 employees (including sole proprietorships, independent contractors and self-employed persons), private non-profit organization or 501(c)(19) veterans organizations affected by coronavirus/COVID-19.
Businesses in certain industries may have more than 500 employees if they meet the SBA’s size standards for those industries.
Small businesses in the hospitality and food industry with more than one location could also be eligible at the store and location level if the store employs less than 500 workers. This means each store location could be eligible.
The Paycheck Protection Program will be available through June 30, 2020.
We want to remind you that this is something you should be applying for the PPP with the help of your lender!
State of Minnesota Small Business Emergency Loan
- Entrepreneur Fund
- 202 W. Superior st. Suite 311. Duluth, MN 55802
- Northland Foundation
- 202 W. Superior St. Suite 610. Duluth, MN 55802
Small Business Relief Loans
"As the COVID-19 situation has been rapidly evolving, we have already witnessed the incredible generosity and creativity of the people of our region. Local businesses are the backbone of our Entrepreneur Fund communities and now more than ever we are committed to serving as a facilitator of resources between those who want to help, and those who need it.
The Relief Fund will provide direct grants to small business owners in northeast and central Minnesota and northwest Wisconsin. Small businesses are in need of immediate liquidity to make key changes to operations and weather this storm. 100% of donated funds will go to small businesses and all contributions are tax deductible.
Grants for up to $5,000 will be made on a weekly basis. A review committee will make selections based on the following priorities:
- Businesses that are not eligible for other sources of local, state, or federal relief such as the SBA Disaster Assistance loans.
- Businesses that serve as a core community staple such as child care, rural/community grocery stores, restaurants, etc.
- Entrepreneur Fund’s determination that the available loans and/or grants will make a discernible impact on the sustainability of the business.
- Businesses where timing is of the essence."
For this information and more, please click here.
Micro Loan Program
Max amount to borrow: $50k
Term: 84 months
Interest Rate: Currently running at 7%
Uses: Working Capital, Supplies, machinery and equipment, fixtures, etc. cannot be used for real estate
For more information regarding The Small Business Relief Loans or The Micro Loan Program, please contact Mike Korte at firstname.lastname@example.org.