UPDATED: April 3, 2020
Local Business Managers and Owners:
Today is the first day that business owners can apply for the Paycheck Protection Program. Please see the links below for new and updated information that may help you access resources created under the CARES Act (Phase III bill). This include an update to the guide they released several days ago on the Paycheck Protection Program.
Guide to SBA’s Economic Injury Disaster Loans (EIDL): https://www.uschamber.com/report/guide-sbas-economic-injury-disaster-loans
Guide to the Employee Retention Tax Credit: https://www.uschamber.com/report/guide-the-employee-retention-tax-credit
Coronavirus Emergency Loans Small Business Guide and Checklist (Paycheck Protection Program): https://www.uschamber.com/sites/default/files/023595_comm_corona_virus_smallbiz_loan_final.pdf
Additionally, the U.S. Department of Treasury issued additional guidance regarding the Paycheck Protection Plan. If you are looking for additional information on the Paycheck Protection Program, you can find that here: https://home.treasury.gov/system/files/136/PPP%20Borrower%20Information%20Fact%20Sheet.pdf
For an application for the Paycheck Protection Program, follow this link: https://home.treasury.gov/system/files/136/Paycheck-Protection-Program-Application-3-30-2020-v3.pdf
Please consult your banking institution for more information on these programs. We will continue to post information that may be helpful to our local businesses as we move forward.
As a final note, the Rockford Economic Development Authority is working on creating a Local Emergency Loan Program to support our local businesses during this crisis. We could use your assistance in identifying areas of needed support and what would be helpful for your local business. Please contact Dan Madsen, City Administrator, to share your insight and help shape this new potential program. (763) 477-6565 ex:4, or email@example.com.
March 31, 2020:
The City of Rockford and Rockford Economic Development Authority are closely following the impact of the Coronavirus (Covid-19) on our economy and local business community. Staff have been attending webinars and speaking with local banks and business owners in an effort to understand what is needed in our local economy, what business support funding has been made available through local or state channels, as well as what may be available under the Federal CARES Act.
Under the “Federal Loans” section below you will find a link to the “streamlined process” for applying for currently available Federal loans. Both local and state programs are in various stages of review and should be available in the near future as well.
We will continue to provide updates and information as we receive it, and are exploring the potential to establish a Rockford EDA Emergency Loan Program that may help local businesses sustain and / or survive the impact of this current crisis.
The Minnesota Department of Employment and Economic Development has established a Small Business Emergency Loan Program pursuant to the Governor’s declaration of a Peacetime Emergency.
Small Business Emergency Loan
Following Executive Order 20-15, DEED has established a loan program to assist small businesses directly and adversely affected and whose industry is named in Executive Orders 20-04 and 20-08 following the COVID-19 pandemic. Small businesses are a vital part of Minnesota’s economy and this program will provide a source of working capital to help businesses sustain operations during this challenging time.
Businesses should apply directly through a certified lender. A list of lenders and application materials are available in the tabs on the website. Nonprofits are not eligible for this program.
The program is still being developed and loans will be available soon. Available information on this loan program can be found on the Mn DEED website here: https://mn.gov/…/financing-business/deed-programs/peacetime/.
The Small Business Administration is in the process of accepting applications for a couple of existing loan programs, and will be releasing application materials to pre-authorized banks for other upcoming loan programs. These programs, and an overview of each, can be found here: https://www.sba.gov/…/coronavirus-covid-19-small-business-g….
Economic Injury Disaster Loans and Loan Advance:
In response to the Coronavirus (COVID-19) pandemic, small business owners in all U.S. states, Washington D.C., and territories are eligible to apply for an Economic Injury Disaster Loan advance of up to $10,000.
The SBA’s Economic Injury Disaster Loan program provides small businesses with working capital loans of up to $2 million that can provide vital economic support to small businesses to help overcome the temporary loss of revenue they are experiencing. The loan advance will provide economic relief to businesses that are currently experiencing a temporary loss of revenue. Funds will be made available within three days of a successful application, and this loan advance will not have to be repaid.
A “Streamlined Process” application can be found here: https://covid19relief.sba.gov/#/.
There are also additional loan programs that have been approved by the CARES Act that are not yet available. These loans will be run through local banks that have been pre-approved by the SBA. These upcoming loan programs are much larger and may be tailored to support businesses more directly affected by the Covid-19 crisis. While outdated, a list of SBA approved banks that may be able to help with these new applications was recently listed on Page 38 of the 2019 SBA Small Business Resource Guide entitled “How to Grow Your Business in Minnesota. It should be noted that banks not listed here may now be SBA approved, while others may be in the process of applying for SBA approval.
Finally, for more information on the Covid-19 impact on businesses in Minnesota, visit the Minnesota Department of Employment and Economic Development website: https://mn.gov/deed/newscenter/covid/employers/.
We will continue to provide updates and share additional information as it becomes available. We will also provide an outline of the potential Rockford Economic Development Loan Program as it takes shape and determine how it can supplement existing programs available to business owners in the City of Rockford.