Feds Dole Out $2.4B in Loans to Minnesota Businesses
The U.S. Small Business Administration has provided more than 42,300 economic injury disaster Payday Champion online loans to businesses in the North Star State.
According to the U.S. Small Business Administration’s most recent Covid-19 disaster assistance update, 42,340 economic injury disaster loans (EIDLs) have been approved in Minnesota. That equates to more than $2.4 billion in relief loans.
Specific data related to local industries and loan recipients isn’t yet available.
EIDLs provide economic relief to small businesses and nonprofit organizations that are experiencing a temporary loss in revenue. The program differs from the popular Paycheck Protection Program in that the loans are disbursed directly through the SBA. PPP loans, on the other hand, are disbursed by a lender, such as a bank or credit union.
Nationwide, nearly 3.8 million EIDLs have been approved by the SBA, totaling nearly $206 billion. The Great Lakes Region, which comprises Illinois, Indiana, Michigan, Minnesota, Ohio, and Wisconsin, accounts for about 12 percent, or $23.1 billion, of the nation’s approved EIDLs.
Meanwhile, on Tuesday, the federal government began administering grants from the Restaurant Revitalization Fund (RRF). The first wave of funding will provide grants to more than 16,000 approved food and beverage applicants nationwide, totaling about $2 billion.
“We know that this help is urgently needed by so many who have suffered disproportionately from this pandemic and have often been unable to access relief,” said SBA administrator Isabella Casillas Guzman in a press release. “Restaurants are the core of our neighborhoods and propel economic activity on Main Streets across the nation. The SBA is here to help them build resilience to survive this pandemic as we get our economy back on track.”
Brian McDonald, district director at SBA’s Minnesota District Office, said that about 13,600 food accommodation businesses in Minnesota are eligible to try for RRF grants. The program provides funds for pandemic-related revenue losses. That means some of those businesses may not qualify. For instance, some bars and restaurants with high takeout sales may not qualify for RRF grants if they didn’t log a decline in revenue.
Businesses interested in EIDL, RRF, PPP, or the Shuttered Venue Operators Grant can click here for cross-program eligibility information.