COVID-19: Resources for Small Businesses and the Self-Employed

Resources for Small Business Owners, Employees, and the Self-Employed

**If your business remains open at this time, continue to follow best practices published by the Minnesota Department of Health to keep your employees and patrons safe**

Resources for Small Businesses:
The Paycheck Protection Program – This program was created under the CARES Act and authorized the Small Business Administration to provide loans to help small businesses retain employees and manage expenses during the COVID-19 outbreak. 

Update: On December 21, 2020, Congress allocated an additional $284 billion worth of funds for this program. The SBA has resumed accepting Paycheck Protection Program applications from participating lenders. Learn more here. 

First Draw Paycheck Protection Program Loans: An SBA loan that helps businesses keep their workforce employed during the coronavirus crisis.

  • The Paycheck Protection Program resumed January 11, 2021, to provide a direct incentive for small businesses to keep their workers on payroll.
    • These funds can be used for payroll costs, including benefits, and may also be used to pay for mortgage interest, rent, utilities, worker protection costs related to COVID-19, uninsured property damage costs caused by looting or vandalism during 2020, and certain supplier costs and expenses for operations.
  • The Small Business Administration will initially only accept First Draw PPP Loan applications from participating community financial institutions.
  • If you are a borrower, you can be matched with a qualified PPP lender using SBA Lender Match.
  • SBA will forgive loans if all employee retention criteria are met, and the funds are used for eligible expenses.
  • Neither the government nor lenders will charge small businesses any fees.

Who qualifies?

  • Small businesses that have 500 or fewer employees—including nonprofits, veterans organizations, tribal concerns, self-employed individuals, sole proprietorships, and independent contractors.

How do I apply?

  • You can apply for a First Draw PPP Loan until March 31, 2021.
  • If you wish to begin preparing your application, you can download the following PPP borrower application form to see the information that will be requested from you when you apply with a lender:

Second Draw Paycheck Protection Program Loans: Eligible businesses may apply for a Second Draw PPP loan.

  • You can apply for a Second Draw PPP Loan from January 13, 2021, until March 31, 2021.
  • Second Draw PPP Loans can be used to help fund payroll costs, including benefits. Funds can also be used to pay for mortgage interest, rent, utilities, worker protection costs related to COVID-19, uninsured property damage costs caused by looting or vandalism during 2020, and certain supplier costs and expenses for operations.
  • The maximum loan amount has increased for accommodation and food services businesses.
  • For most borrowers, the maximum loan amount of a Second Draw PPP Loan is 2.5x average monthly 2019 or 2020 payroll costs up to $2 million. For borrowers in the Accommodation and Food Services sector, the maximum loan amount for a Second Draw PPP Loan is 3.5x average monthly 2019 or 2020 payroll costs up to $2 million.

Who qualifies?

Individuals usually qualify if they:

  • Previously received a First Draw PPP Loan and will or has used the full amount only for authorized uses.
  • Has no more than 300 employees.
  • Can demonstrate at least a 25% reduction in gross receipts between comparable quarters in 2019 and 2020

How do I apply?

COVID-19 Economic Injury Disaster Loans: This loan provides economic relief to small businesses and nonprofit organizations that are currently experiencing a temporary loss of revenue.

  • SBA is currently accepting applications from all qualified small businesses, including agricultural businesses and private nonprofit organizations.
  • Funds can go towards working capital & normal operating expenses
  • In addition, read more about Targeted EIDL Advances here.
  • To apply, visit here.

SBA Debt Relief: The SBA is providing a financial reprieve to small businesses during the COVID-19 pandemic.

  • Debt relief is provided for those with existing SBA loans, including current SBA serviced Disaster (Home and Business) loans.
  • Read more here.

Shuttered Venue Operators Grant: Emergency assistance for eligible venues affected by the COVID pandemic.

  • The Shuttered Venue Operators (SVO) Grant program includes $15 billion in grants to shuttered venues, to be administered by the SBA’s Office of Disaster Assistance.
  • Eligible applicants may qualify for SVO Grants equal to 45% of their gross earned revenue, with the maximum amount available for a single grant award of $10 million.
  • $2 billion is reserved for eligible applications with up to 50 full-time employees. 

Who can apply?

  • Live venue operators or promoters
  • Theatrical producers
  • Live performing arts organization operators
  • Relevant museum operators, zoos and aquariums who meet specific criteria
  • Motion picture theater operators
  • Talent representatives, and
  • Each business entity owned by an eligible entity that also meets the eligibility requirements

You can find even more options for COVID-19 funding options by zip code at sba.gov/covid-19-funding-sources/index.html. To read more about assistance programs for small businesses as well as for American workers and families, please go to home.treasury.gov/policy-issues/cares.

Update: On April 24, 2020, Congress allocated an additional $321 billion worth of funds for this program. The SBA has resumed accepting Paycheck Protection Program applications from participating lenders. Learn more here. 

To apply, visit a participating lender to complete an application and submit the required documentation.

Update: On May 15, 2020, the Small Business Administration (SBA), in consultation with the Department of the Treasury, released the Paycheck Protection Program (PPP) Loan Forgiveness Application and detailed instructions for the application. 

You can find the application and instructions here.  

  • Eligible entities: Small businesses (500 or fewer employees), 501(c)(3) nonprofit organizations, Veterans organizations, certain tribal businesses, self-employed individuals, and independent contractors.

  • Benefits of the Paycheck Protection Program:

    • Loans can be 100% forgiven by the SBA if certain qualifications are met.

    • Eligible recipients may qualify for a loan up to $10 million determined by 8 weeks of prior average payroll plus an additional 25% of that amount.

    • Loan payments will be deferred for six months.

    • Click here to learn more.

For businesses, click here to access SBA's application for the Paycheck Protection Program

For lenders, click here to access SBA's application for the Paycheck Protection Program

The Economic Injury Disaster Loan program - Minnesota is included in the Small Business Administration's Economic Injury Disaster Loan (EIDL) program, designed to assist small businesses and private non-profits harmed by COVID-19. On April 23, 2020, Congress allocated another $60 billion for this program. 

Update: On April 24, 2020, Congress allocated another $60 billion for this program. SBA has resumed processing EIDL Loan and Advance applications already in the queue. Information about receiving new applications will be provided soon.

  • Eligible entities: Small businesses (500 or fewer employees), 501(c)(3) nonprofit organizations, Veterans organizations, certain tribal businesses, self-employed individuals, and independent contractors.

  • Benefits of the EIDL Program:

    • The SBA’s Economic Injury Disaster Loan program provides small businesses with working capital loans of up to $2 million that can provide vital economic support to small businesses to help overcome the temporary loss of revenue they are experiencing.

  • EIDL applicants are eligible for an emergency advance of up to $10,000 within three days of applying for an EIDL Loan

  • You can read more about the program in these slides 

Click here to apply for a COVID-19 Economic Injury Disaster Loan

The SBA Express Bridge Loan Pilot Program – This program allows small businesses who currently have a business relationship with an SBA Express Lender to access up to $25,000 with less paperwork and red tape.

  • Eligible Entities: Small businesses (500 or fewer employees), 501(c)(3) nonprofit organizations, Veterans organizations, certain tribal businesses, self-employed individuals, and independent contractors.

  • Benefits of the Express Bridge Loan Pilot Program:

    • These loans can provide vital economic support to small businesses working to overcome temporary loss of revenue.

    • Loans can be a term loan or used to bridge the gap while applying for a direct SBA Economic Injury Disaster loan.

    • If a small business has an urgent need for cash while waiting for decision and disbursement on Economic Injury Disaster Loan, they may qualify for an SBA Express Disaster Bridge Loan.

    • Up to $25,000; Fast turnaround; Will be repaid in full or in part by proceeds from the EIDL loan

Find an Express Bridge Loan Lender by connecting with your local SBA District Office

Additional Resources for employers: 
  • Learn more about the Essential Critical Infrastructure Workforce Designation by reading the Director Cybersecurity and Infrastructure Security Agency's (CISA) guidance document, here.
  • Find helpful strategies for businesses provided by the United States Chamber of Commerce.
  • Read the U.S. Department of Labor’s Fact Sheet for Employers 
  • Explore additional resources from the Small Business Administration here.
  • For more resources for small businesses, including SBA Debt Relief, export assistance, government contracting, local assistance, and other SBA Products and Resources, please go to the U.S. Small Business Administration’s COV-19 Resources Page.

Resources for Self-Employed, Contractors and Sole Proprietors: 
Following passage of the Families First Coronavirus Relief Act and the CARES Act, several changes have been made to provide support self-employed individuals, contractors, and sole proprietors. Here are some the most recent changes:

  • Newly established programs like the Paycheck Protection Program include self-employed individuals, contractors, and sole proprietors as eligible applicants;
  • Self-employed individuals may be entitled to tax credits for lost wages, as provided by the Families First Coronavirus Relief Act
  • Delay of payment of employer payroll taxes - Employers and self-employed individuals can defer, or postpone, the employer share of the Social Security payroll tax through the end of 2020.

Resources for Employees:
Workers impacted by the spread of and response to the Coronavirus have a range of options to help them weather the storm. 

  • Employees are now eligible for expanded sick and paid family leave through their employers for time away from work due to COVID-19

  • Modifications to Minnesota’s Unemployment Insurance program, further enhanced by federal action for employees affected by COVID-19, now provide:

  • Support for those not traditionally eligible for UI, such as self-employed and independent contractors, like gig workers and Uber drivers, as well as those who are unable to work or telework as a result of the coronavirus public health emergency through a new Pandemic Unemployment Assistance program;

  • Funding to reimburse nonprofits that are not part of the state unemployment system for 50% of the costs they incur through December 31, 2020 to pay unemployment benefits;

  • An additional $600/week payment to each UI or Pandemic Unemployment Assistance recipient for 4 months beginning April 1 through July 31, 2020;

  • Funding for the 1st week of unemployment for states to waive the traditional “waiting week” before benefits begin; and

  • An additional 13 weeks of unemployment to help those who remain unemployed after weeks of state unemployment are exhausted.

  • The Minnesota Department of Employment and Economic Development has resources to assist employees and ongoing updates for our workforce

  • You can find additional resources for employees by reviewing the Minnesota Chamber of Commerce’s Toolkit for Employees and Small Businesses

  • You can find the U.S. Department of Labor's guidance on pandemic unemployment assistance here. 
Important Contacts: