The Minnesota Department of Employment and Economic Development has announced that 1,020 small businesses throughout Minnesota, including several in the Detroit Lakes area, received a Small Business Emergency Loan to help withstand temporary closures due to the COVID-19 pandemic.
More than $27 million in loans were made from $30 million in special revenue funds allocated to the emergency loan program. The remaining $2.8 million was distributed to lenders to assist with loan administration and technical assistance expenses. DEED worked with lenders throughout Minnesota to implement the emergency loan program, which opened for applications in late March. Loans were issued to qualified businesses beginning in April and completed by June 30.
"Small Business Emergency Loans helped hundreds of businesses across Minnesota survive the initial impacts of the COVID-19 pandemic," said DEED Commissioner Steve Grove in a press release.
Loans were made for amounts between $2,500 and $35,000 to qualifying small businesses whose owners lacked adequate cash flow to withstand temporary closure.
The 0% interest loans are up to 50% forgivable if the business maintains operations at substantially the same level as before the pandemic. Because these loans are considered bridge financing, if other financing becomes available, such as federal funding, the emergency loan must be repaid.
The emergency loans went to help businesses temporarily closed under executive orders that stopped onsite customer dining at restaurants and bars and closed salons, tattoo parlors and other personal care businesses.
Detroit Lakes area businesses that received loans were: GVK Inc., Detroit Lakes; Holland Motel Inc., Detroit Lakes; Legacy Total Martial Arts LLC, Detroit Lakes; RPS Enterprises LLC, Detroit Lakes; Spanky's Stone Hearth, Vergas; and Teragawa Davis Inc., Detroit Lakes.
The loans were made throughout Minnesota, with businesses in the seven-county metro receiving $13.2 million in loans and businesses in Greater Minnesota receiving $14 million.
DEED is the state’s main economic development agency. For more information, visit the DEED website.