There are some programs coming on-line or changing that can help businesses and self-employed people coming out of the Federal CARES Act signed into law last week that we want to draw your attention to:
- Businesses should be planning their requests to the new Paycheck Protection Program.Â Â The program becomes live as soon as this Friday (4/3). Businesses (including self-employed) can receive forgivable loans up-to-250% of its payroll to support its employees and occupancy expenses. No collateral requirements, no fees, no payments for 6 months. The loan is forgiven in eight weeks if the business can show it used the funds for eligible expenses. Lending through the businessesâ€™ bank or an SBA qualified lender. Â The City is working with the Too Local to Fail Coalition led by the Minneapolis Chamber.Â We will be launching an awareness campaign for this resource tomorrow, so you will see more on it.Â Included in this campaign is a webinar hosted by Sunrise Banks at 1 p.m. tomorrow.Â We will share details on accessing that webinar as soon as these are available.
- The SBAâ€™s Economic Injury Disaster Loans are live.Â These loans are up-to-$2 million at 3.75% with favorable teams.Â Whatâ€™s new is that the SBA streamlined its process and now offers now an up-front $10,000 grant against the loan.
- The CARES Act also included the Pandemic Unemployment Assistance program.Â This program expands who is eligible for Unemployment Insurance to those individuals who do not qualify for regular unemployment compensation and are unable to work because of COVID-19. This includes self-employed workers (including gig workers and independent contractors), part-time workers, and those with limited work histories. It also increases unemployment benefits and make them available for additional weeks to benefits.Â The State of Minnesota administers this program.Â It is awaiting guidance from the U.S. Department of Labor on how to implement the program and the expanded services will be available in the near future.