Resources, Services, and Updates
COVID-19 will impact the cashflows of many businesses and nonprofits. We wanted to share a few resources and offer our help.
News reports indicate that the federal Small Business Administration (SBA) will begin offering Economic Injury Disaster Loans to impacted small businesses and private, nonprofit organizations. These are low-interest loans meant to pay fixed debts, payroll, accounts payable and other bills that can’t be paid because of the disaster’s impact.
Economic Injury Disaster Loans will be issued directly from SBA’s Office of Disaster Assistance (not from 7(a) lenders). As of 3/19/2020, the SBA is expected to provide Minnesota small business assistance through its disaster loan program as soon as the state declaration is approved.
While no one can apply for a loan until the declaration for Minnesota is approved, you can get started right now with the forms needed and be ready to go when the portal opens.
Economic Injury Disaster Loan Forms
- Tax Information Authorization (IRS Form 4506T) for the applicant, principals and affiliates
- Complete copies of the most recent Federal Income Tax Return
- Schedule of Liabilities (SBA Form 2202)
- Personal Financial Statement (SBA Form 413)
- Profit and loss statements
- Monthly sales figures (SBA Form 1368)
To learn more about the SBA Disaster Assistance program we encourage you to review a recent SBA webinar and read their general handout (include attached). More information on these loans can be found here, and to reach the SBA disaster assistance customer service center, please call 1-800-659-2955 (TTY: 1-800-877-8339) or e-mail firstname.lastname@example.org.
As other resources from the SBA or others become available, we will update you. Sign up for newsletter updates, check back to this page, or follow us on social media. We will post new information as we have it.
For Current Entrepreneur Fund Clients
If you’re currently one of our loan clients, we’re prepared to revise your Entrepreneur Fund loan agreement. This includes potentially extending your due date, temporarily reducing payments, working capital loans, or taking other measures that may help your business. It is important to understand that our ability to support you during this time is contingent on learning about issues before they are critical. Email or call an advisor or lender to schedule a phone or video conference now.
Our advisors will be proactively reaching out to our clients to touch base, assess needs and provide support, starting with the more impacted industries. We also encourage you to contact your lender or advisor this week to schedule a phone or video meeting. If you aren’t sure who your lender or advisor is, please start with our Client Relationship Manager by completing the Contact Page or sending an email to email@example.com. Email requests are preferred and will be responded to within 48 hours, if not sooner.
In addition, the Entrepreneur Fund offers on-going business consulting services for a variety of scenarios, including:
- Adjustments to existing operations
- Adjusting to a reduced workforce
- Adjusting to inventory/supply chain shortfalls
- Ensuring access to capital
- Coronavirus management – practices for staff and owners
- Communicating with customers regarding safety precautions
- Strategizing on ways to diversify revenue offerings that are more resilient to the effects of Coronavirus
If You’re Not a Client
The Entrepreneur Fund still offers our existing business lending and advising services to small businesses in Northeast and Central Minnesota, and Northwest Wisconsin. We encourage you to familiarize yourself with our services and loan products and, if you feel like it is a good fit, reach out our Client Relationship Manager at firstname.lastname@example.org. We will respond to all requests within 48 hours and work to setup a 30-minute consultation via video or phone conference to go over your needs.
Lastly, we want to remind all business owners that financing needs vary greatly – especially in uncertain times like these. With that in mind, we strongly encourage you to be careful and deliberate when considering additional debt.
The reality is that quick, low-cost business loans do not exist. Online loans and merchant cash advances (an advance on your daily sales through your merchant services/credit card processor) may present a quick turnaround time, automatic repayment, and the appearance of great terms. But often, they have daily or weekly repayment schedules and effective interest rates over 100 percent APR.
If you feel that an online loan or merchant cash advance are your best or only option, we hope you pause to consider the Entrepreneur Fund.
- Minnesota Unemployment Insurance (UI) Program
- U.S. Postpones April 15 Tax Payments for 90 Days for Most Americans
- Facebook Small Business Grants Program
- About Coronavirus Disease 2019 (COVID-19)
- CDC Interim Guidance for Businesses and Employers
- SBA Guidance and Loan Resources
- MDH COVID-19 Overview
- COVID-19 Tax Relief – IRS
- High-Deductible Health Plans can cover coronavirus costs. IR-2020-54.
- Actions Taken by the U.S. Government in English and Spanish.
- MN Department of Health Information for Businesses and Employers