Barb Sheldon of Alerus Bank identifies the various federal and local loan and grant programs available to small business owners. She explains the purpose and availability of the various options:

-The Economic Injury Disaster Loan (EIDL) from the Small Business Administration which were the SBA's first grants/loans offered to small businesses. The first round of funding has been exhausted. There has been a second round of funding, but the remaining funds are directed at agricultural businesses (for now).  The guidelines are subject to change.

-The Paycheck Protection Program (PPP) loans which were focused on helping businesses maintain their payroll. These loans are forgivable if you fall within certain parameters.

-The SBA Express Bridge Loans which were to be fast turnaround loans of up to $25,000 while businesses were awaiting the EIDL funds.

-SBA Debt Relief under which the SBA will automatically pay your interest and principal on SBA loans for up to six months.

-The Main Street Lending Program which the Federal Reserve will unveil at the end of the month. This loan program is directed at small and medium-sized businesses.

She discuss local programs as well. In St. Paul there are two loan programs—the Neighborhood Star Program and the Job Opportunity Fund. Minneapolis has the Two Percent Loan Program and the Great Streets Program. These are largely focused on capital improvements, working capital and job creation.

In addition, the Minnesota Department of Employment and Economic Development (DEED) website has a lot of helpful information.

Finally, she discusses the importance of having a relationship with your banker to get the services and resources your business needs.

If you’re interested in additional information on any of the programs discussed on the podcast, the contact information for Barb Sheldon is as follows:

barbara.sheldon@alerus.com

651.288.2319