Entrepreneur and Businesses Updates

Relative to Covid-19 Crisis

Last Updated: 3/29/2020

A new program has been recently approved for a SBA loan which can be quickly approved for an amount up to $25,000 to be used to bridge a company financially pending approval of their SBA Disaster relief loan.  You will need to apply for the loan at an lender participating in the SBA loan program.

Information can be found here.

The program PDF can be found here.

The programs and initiatives in the – Aid, Relief, and Economic Security (CARES) Act that passed on March 27, 2020 is intended to assist business owners with whatever needs they have right now. When implemented, there will be many new resources available for small businesses, as well as certain non-profits and other employers.

Here is a link to a PDF with more information on the Care’s Act.

Here’s a link to more information on Covid-19 related programs for small business.

The SBA Economic Disaster Relief Loan Assistance program offers up to $2 million in assistance and can provide economic support for small businesses. The Disaster Relief Loans supplied by the U.S. Small Business Administration will be 3.75% for businesses and 2.75% for non-profits. The loan can be a maximum of 30 years to help keep payments low.

The types of businesses and size of the companies in income and number of employees in each industry who qualify for Small Business Association loan are here.  We believe the number codes for each type of business on this form are used in the type of business performed question in the program loan application.

The loan application forms, instructions and form upload tool can be found here.

A PDF of the Powerpoint included in a Covid Disaster loan webinar on 3-28-20 can be found here.

The aim of these relief packages are to keep employees connected with employers. These funds should also be used for rent and essential bills. Essential bills include operations and payroll. 

Individual checks that may go to employees and all Americans are still pending an amount. It is estimated that each adult will receive $1200 and children will receive $500. This has been released by The Washington Post and Fox News. The Unemployment Insurance programs across the nation will also be adding $600/ week to all individual checks. It has also been approved that if the reason of unemployment is due to COVID-19, the company will not be penalized for the unemployment of their employees. 

Information Provided by: Minnesota Governor Walz Press Conference
3/25/2020 at 2:00 p.m.
“Stay At Home MN”
Minnesota Governor Walz issued a “Stay at Home” Order on 3/25/2020, effective 11:59 PM on Friday, except for exempt service providers. Walz states that Minnesota’s exponential growth is tracking the pace Italy has had. The recent computer models created impart with University of Minnesota, has shown “74,000 Minnesotans could die from the illness without mitigation strategies and that the state’s 235 intensive care unit beds would be overrun by end of April (6 week period).”

“The new restriction will require Minnesotans to remain in their homes as much as possible. Grocery shopping, seeking medical attention or picking up medication or exercising outdoors would still be allowed under the order. Those who are able to work from home should do so, under the order, and those deemed essential workers will be exempt from possible fines and jail time for traveling or gathering.”

More details can be found at:
Fox9
https://www.fox9.com/news/minnesota-gov-tim-walz-issues-statewide-stay-at-home-order-amid-covid-19-pandemic
WDIOhttps://www.wdio.com/duluth-minnesota-news/minnesota-governor-walz-conference-stay-at-home-order/5684276/?cat=12056
MN.Govhttps://mn.gov/governor/covid-19/

 

Information provided by: MN Leaders COVID-19 Conference 3/20/2020
Business Assistance:
Governor Walz has requested assistance from the SBA for Minnesota businesses statewide and the request was approved March 20, 2020.

Governor Walz has worked with the IRS to finalize the process of moving income tax filling to July 15th. He urges citizens to file if they are able to collect money and promises that these filings will be process as fast as possible. Governor Walz is continuously working with businesses state wide to understand their perspectives.

Commissioner Steve Grove, from the Minnesota Department of Employment and Economic Development, reassured Minnesota that Unemployment Insurance Process is open to all. He reported that 95,000 applications were received in the last week. 85% of these applications have never been on Unemployment before. Commissioner Grove is not worried about the capacity of the unemployment insurance capacity In  Minnesota. More information on UI, unemployment Insurance, can be found at UIMN.org.

Health Care System:
Minnesota health care system is reportedly receiving the modeling for inventory and transmission of COVID-19 by the end of the week (Sunday). Health care providers and leaders in MN urge all Minnesotans to STAY HOME! It is believed that community transmission is state wide. Governor Walz is urging to delay all elective surgeries. There is a 115+ confirmed cases in MN. Health care providers in Minnesota have received a partial shipment of equipment for hospitals state wide. The ultimate goal for Governor Walz is the protection and security of all citizens.

MN Leaders will continue to give updates on weekdays at 2 p.m.

Links:
Mayo – https://www.mayoclinichealthsystem.org/covid19
MN Department of Health – https://www.health.state.mn.us
SBA Eligible States – https://disasterloan.sba.gov/ela/Declarations

On March 23rd, 2020, Governor Walz has signed an executive order to establish a peacetime emergency loan for certain classes of small businesses which are located in Minnesota.

The minimum loan is $2,500 and the maximum loan is $35,000. The DEED commissioner can approve 50% forgiveness of these loans if the business remains open to the community for the following two years after the disbursement.

To qualify for the loan, you must not be able to get a loan from a bank or other financial institution.  If you later receive such a loan, the DEED loan must be repaid out of the funds.  Your company must have been in business in Minnesota for at lease a year to apply  And, unfortunately, only certain classes of small businesses seem to qualify according to the loand site.  However, the Executive Order giving rise to the loan program seem also to say that any small business showing impact from the crisis can qualify.  So, clarification needs to be sought on that matter.

The loan application, and types of businesses which qualify can be found here.

The DEED Peacetime loan related executive order can be found here.

You can read more about the Governor’s executive orders here.

Contact Us If You Want Assistance:

During the COVID-19 crisis we’re offering our services at cost ($45/ Hour), While the loan assistance program is free!

COVID-19 Daily Email Guidance (FREE)
  • Up to date government program with direct links and forms.
  • Notice of important events from the Minnesota and Federal Government.
  • Other resources and services that are available during the COVID-19 crisis.
Strategic Decision Making Guidance
  • Bring experts in to help make the right decisions for your business.
Fractional Service
  • If you need help with marketing, remote work set-up, financial decisions, or operation choices, Garage Starts can help you.
Loan Application Assistance FREE
  • Garage Starts will walk each business through the necessary steps in order to correctly fill out the SBA Disaster Relief Loan.

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General Information

COVID- 19 Guidance for Businesses and Employers

COVID-19, also known to the public as the coronavirus, has created huge economic impact across all industries in the United States. Places such as California, Ohio, and Minnesota have put “Stay At Home” orders in place. The full list of states that have shut down all non-essential businesses can be found here. Non-essential and essential businesses are determined by each individual states governor.

According to Homeland Security there at 16” critical sectors: (Essential)

  • Chemical
  • Commercial facilities
  • Communications
  • Critical manufacturing
  • Dams
  • Defense industrial base
  • Emergency services
  • Energy
  • Financial service
  • Food and agriculture
  • Government facilities
  • Health care and public health
  • Information technology
  • Nuclear reactors, materials, and waste
  • Transportation systems
  • Water and wastewater systems

Each state will release the official list of essential businesses before the “Stay At Home” order goes into effect. From what we have seen with previous states the essential businesses will revolve around these critical sectors and keeping supply chains open.

If you currently are not in a state that has been placed under a “Stay At Home” order or remains open due to being essential, your business should be following the CDC’ s Interim Guidance for Business and Employers. These guidelines include Avoiding Social Gatherings in groups of more than 10, work From Home whenever is possible, and Avoid Discretionary Travel. The President requests that all Critical Infrastructure Industries continue work and to maintain your normal work schedule. These places of work should follow CDC guidelines to protect your health at work.

Interim guidance from the CDC for businesses and employers should also be taken very seriously during this time. Businesses or employers will be able to find all details at CDC.gov. These guidance rules may help prevent the spread of COVID-19, in non-healthcare facilities. The guidance found on the CDC website provides planning consideration if there are more widespread, community outbreaks of COVID-19. To avoid and help prevent COVID-19 from spreading in the workplace, include the use of the CDC guidelines for Environmental Cleaning and Disinfection Recommendations. These recommendations take into consideration Personal Protective Equipment (PPE) and Hand Hygiene, how and what to Clean and Disinfect, and also how to minimize the spread of the virus via air in the residential setting.
Links:

Loans and Capital Relief Funding

The economic impact caused by COVID-19 has been devastating for most areas. The federal and state government are providing relief in many forms.

The first form of relief is the SBA Disaster Relief Loan. The SBA Economic Disaster Relief Loan Assistance program offers up to $2 million in assistance and can provide economic support for small businesses. The types of businesses and size of the companies in income and number of employees in each industry who qualify for Small Business Association loan are here.  We believe the number codes for each type of business on this form are used in the type of business performed question in the program loan application.

The second form of relief is the Federal Express Bridge Loan Pilot Program. A new program has been recently approved for a SBA loan which can be quickly approved for an amount up to $25,000 to be used to bridge a company financially pending approval of their SBA Disaster relief loan.  You will need to apply for the loan at an lender participating in the SBA loan program.

The third form of relief is Minnesota Peacetime Emergency Loans for Small Businesses. The minimum loan is $2,500 and the maximum loan is $35,000. The DEED commissioner can approve 50% forgiveness of these loans if the business remains open to the community for the following two years after the disbursement.

To qualify for the loan, you must not be able to get a loan from a bank or other financial institution.  If you later receive such a loan, the DEED loan must be repaid out of the funds.  Your company must have been in business in Minnesota for at least a year to apply  And, unfortunately, only certain classes of small businesses seem to qualify according to the loaned site.  However, the Executive Order giving rise to the loan program seems also to say that any small business showing impact from the crisis can qualify.  So, a clarification needs to be sought on that matter.

  • The loan application, and types of businesses which qualify can be found here.
  • The DEED Peacetime loan related executive order can be found here.
  • You can read more about the Governor’s executive orders here.

The last type of relief released is the Federal Care’s Act (Stimulus). The programs and initiatives in the – Aid, Relief, and Economic Security (CARES) Act that passed on March 27, 2020 is intended to assist business owners with whatever needs they have right now. When implemented, there will be many new resources available for small businesses, as well as certain non-profits and other employers.

The purpose of all of the relief packages is to keep the employer connected to the employee. Having critical workers and small businesses fully funded in America is the key to the United States economy bouncing back. Keep up with the latest relief packages right here on the top of the COVID-19 Disaster Relief Information page.

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