Federal Government Provides $ 2.4 Billion in Minnesota Business Loans
According to the US Small Business Administration’s most recent Covid-19 Disaster Assistance update, 42,340 Economic Disaster Loans (EIDLs) have been approved in Minnesota. This equates to over $ 2.4 billion in relief loans.
Specific data on local industries and loan recipients are not yet available.
EIDLs provide economic assistance to small businesses and non-profit organizations that experience temporary loss of income. The program differs from the popular Paycheck Protection Program in that the loans are disbursed directly through the SBA. PPP loans, on the other hand, are disbursed by a lender, such as a bank or a credit union.
Nationally, nearly 3.8 million EIDLs have been approved by the SBA, for a total of nearly $ 206 billion. The Great Lakes region, which includes Illinois, Indiana, Michigan, Minnesota, Ohio, and Wisconsin, accounts for about 12 percent, or $ 23.1 billion, of the nation’s approved LIAs.
Meanwhile, on Tuesday, the federal government began administering grants from the Restaurant Revitalization Fund (RRF). The first wave of funding will provide grants to more than 16,000 approved food and beverage applicants across the country, for a total of approximately $ 2 billion.
“We know this help is urgent for so many people who have suffered disproportionately from this pandemic and who have often been unable to access relief,” SBA administrator Isabella Casillas Guzman said in a statement. Press release. “Restaurants are at the heart of our neighborhoods and propel economic activity on the main streets of the country. The SBA is here to help them build their resilience to survive this pandemic as we get our economy back on track. “
Brian McDonald, district director in the SBA’s Minnesota district office, said about 13,600 food accommodation businesses in Minnesota are eligible to try to obtain grants from the RRF. The program provides funds for lost income related to the pandemic. This means that some of these companies may not be eligible. For example, some bars and restaurants with high take-out sales may not be eligible for RRF grants if they have not experienced a decline in their income.
Companies interested in EIDL, RRF, PPP or the Closed Site Operator Grant can click here for information on cross-program eligibility.