Gov. Walz Issues Executive Order to Create Small Business Emergency Loan Program
ST. PAUL, Minn. (FOX 9) – Minnesota Gov. Tim Walz signed a series of executive orders Monday to help curb COVID-19’s spread through the state and mitigate its effects on the economy.
One of those orders authorized the Minnesota Department of Employment and Economic Development (DEED) to create a small business emergency loan program for those who have been affected by COVID-19.
DEED Commissioner Steve Grove said the loans will be up to 50 percent forgiveable and have 0 percent interest. DEED also plans to help Minnesota cities and municipalities activate their revolving loan funds if they so choose to similarly help small businesses.
In order to make the program work, DEED will make $30 million available from special revenue funds. The loans will be dispersed in amounts between $2,500 and $35,000. The loans should be available by the end of the week, according to a release from DEED. Anyone with questions should email ELP@state.mn.us.
In a release, the Governor’s office said Minnesota’s small businesses and independent contractors are “amongst the worst hit by the pandemic.” Grove said there have been more than 123,000 unemployment insurance applications submitted so far and asked people to apply online at UIMN.org.
The program is designed to help those businesses who need immediate assistance while everything is closed.
Last week, Gov. Tim Walz ordered the closure of bars, restaurants and many other businesses that serve patrons in person. Since, many of those businesses have been forced to lay off employees as a result.