ECONOMIC IMPACT RESOURCE MEETING THURSDAY, APRIL 16 TH
ItascaDV.org
TODAY’S AGENDA 4.16.2020 • Important SBA Program • Getting Back to Business Best Updates Practices • Emergency Business Retention • City of Grand Rapids Emergency Program Working Capital Loan Program • Entrepreneur Engagement • Coronavirus Aid, Relief, and Program Economic Security Act “CARES Act” • Business Impact Surveys • State of Minnesota Small • Itasca Strong Business Emergency Loans • Itasca Small Business Relief • Child Care Grant Program Fund Loans • Community Updates • Legislative Update ItascaDV.org
SBA UPDATES • Lapse in Appropriations Notice : SBA is unable to accept new applications at this time for the Paycheck Protection Program or the Economic Injury Disaster Loan (EIDL)-COVID-19 related assistance program (including EIDL Advances) based on available appropriations funding. • EIDL applicants who have already submitted their applications will continue to be processed on a first-come, first-served basis. ItascaDV.org
EMERGENCY BUSINESS RETENTION AND EXPANSION • The emergency BRE program will be launched to begin preparation for recovery planning and programming due to the economic impact of COVID- 19. This is an additional resource being offered to businesses within Itasca County. • Perform virtual Business Retention and Expansion Meetings for targeted businesses in the month of April – May. • Focus on 9 target question groups: Workforce • Current Situation • Recovery Planning • • This program will focus on identifying businesses for site-visits later in 2020. • To be included in the BRE Emergency Planning Meetings please contact Kirstie McPherson at Kirstie@Edeveco.com or Matt Shermoen at matt@apexgetsbusiness.com ItascaDV.org
ENTREPRENEUR ENGAGEMENT PROGRAM • The Entrepreneur Engagement Program will launch as a virtual platform with a “steering” committee of entrepreneurs in Itasca County. • This program aims to address these goals: Connect entrepreneurs within Itasca County • Help grow and maintain the entrepreneur ecosystem • Aid business growth • Identify potential programming around entrepreneurship activities • • The program will begin virtually and expand to in-person later in 2020. • To be added to the entrepreneur list and stay in the loop – Kirstie McPherson Kirstie@Edeveco.com • ItascaDV.org
BUSINESS IMPACT SURVEY Round 2: Tuesday, Round 1 April 21 st • New “General” Survey • 102 Responses • New “Tourism & • 460+ Lay offs Hospitality” Survey Unemployment Updates for Itasca County 3,479 New Applicants since March 15 15.6% of the 2019 Labor Force ItascaDV.org
ITASCA STRONG ItascaDV.org
ITASCA SMALL BUSINESS RELIEF FUND (ISBRF) Itasca County Economic Development Corp has spearheaded a fund to provide relief to small businesses to make it through the Covid-19 pandemic and preserve the small businesses that make up the vitality of our Itasca County communities. • Targeting businesses in need – those that have access to other funds will be considered but priority will be given to businesses in critical need • 39 Current Applications • 3 Applications approved and sent to closing process • 6 Applications up for approval today • We continue to source new funding opportunities ItascaDV.org
ISBRF LOAN TERMS Loan Size: • Up to $25,000 Terms: • Initial 6 month deferral period for principal. • 10 year amortization with a 5-year balloon. • 0% Interest rate. ItascaDV.org
ISBRF ELIGIBILITY • Businesses in Itasca County (and Blandin Foundation footprint communities – Hill City, Northome, Blackduck and Remer) • Businesses effected by the COVID-19 virus (all businesses not only those included in the executive order) • Be current on financial obligations as of March 1, 2020 • Be an existing small business • Recommended to apply for SBA Disaster Fund and other available funds ItascaDV.org
LEGISLATIVE UPDATE: MINNESOTA • Loren Solberg ItascaDV.org
GETTING BACK TO BUSINESS: BEST PRACTICES • Develop an Infectious Disease Preparedness and Response Plan • Prepare to Implement Basic Infection Prevention Measures • Develop Policies and Procedures for Prompt Identification and Isolation of Sick People, if Appropriate • Develop, Implement, and Communicate about Workplace Flexibilities and Protections https://www.osha.gov/Publications/OSHA3990.pdf ItascaDV.org
IMPLEMENT WORKPLACE CONTROLS • Engineering Controls • Administrative Controls • Safe Work Practices • Personal Protective Equipment (PPE) https://www.osha.gov/Publications/OSHA3990.pdf ItascaDV.org
GRAND RAPIDS ECONOMIC DEVELOPMENT AUTHORITY (GREDA) EMERGENCY WORKING CAPITAL LOAN PROGRAM Currently - 8 Loans have been approved Eligible Applicants • All businesses, located in the City limits of Grand Rapid that have been impacted by the social and economic disturbance resulting from the COVID-19 Pandemic. Those business categories referenced in Governor Walz’s Executive Orders 20 -04 and 20-08 may be given preference. • All eligible applicants must be registered with the Minnesota Secretary of State as a Minnesota based business as of December 1, 2019. • All eligible applications must be current with their local property taxes. ItascaDV.org
GREDA EMERGENCY WORKING CAPITAL LOAN POLICY Loan Conditions • Maximum loan amount is $15,000.00 • Minimum loan amount is $1,000.00 • Interest rate will be zero percent • Loans will be fully amortized over their 60 months term, beginning with the first required payment. • Loan repayments will be deferred for 6 months following loan disbursement • There will be no penalty for early repayment. ItascaDV.org
CORONAVIRUS AID, RELIEF, AND ECONOMIC SECURITY ACT “CARES ACT” Cash Payments • 2020 Recovery Payment: All U.S. residents with adjusted gross income up to $75,000 ($150,000 joint filers) are eligible for a $1,200 ($2,400) payment, as well as an additional $500 per child (under age 17). • When can I expect my payment? • These payments have been hitting bank accounts this week. Visit the IRS site to learn more. https://www.irs.gov/newsroom/economic-impact-payments-what-you-need-to-know ItascaDV.org
CARES ACT Unemployment Insurance • Increased Unemployment Assistance: Provides an additional $600/week payment to each recipient of unemployment insurance for up to four months. – The second round of these payments are hitting accounts this week! Provides an additional 13 weeks of unemployment benefits through Dec. 31, 2020, • for those who remain unemployed after state unemployment benefits are no longer available. The State of MN has put this program in place effective immediately. For those who are self employed or run small businesses, what are the best options available for me to collect unemployment? • Gig workers and freelancers This bill creates a new, temporary Pandemic Unemployment Assistance program • Program is still being set up at the state level – look for funds later in April • Please go on line and apply – steps to apply are on the IEDC Website • ItascaDV.org
ITASCA COUNTY SBA 7A LENDERS Big Fork Grand Rapids • First State Bank of Big Fork – • Affinity Plus Federal Credit Union - www.affinityplus.org www.fsbbigfork.com • American Bank – www.ambnk.com Cohasset • Deerwood bank – • Woodland Bank – www.deerwoodbank.com www.woodlandbank.com • Entrepreneur Fund – www.entrepreneurfund.org Coleraine • Grand Rapids State Bank – • 1 st National Bank of Coleraine www.grsb.com www.colerainebank.com • Member Federal Credit Union – www.membersccu.org Deer River • Northview Bank – • Northview Bank – www.northviewbank.com www.northviewbank.com • US Bank - www.usbank.com • Woodland Bank – • Wells Fargo - www.wellsfargo.com www.woodlandbank.com • Woodland Bank – Check with your lender! www.wodlandbank.com ItascaDV.org
CARES ACT: SMALL BUSINESS DEBT RELIEF PROGRAM • This program will provide immediate relief to small businesses with non-disaster SBA loans, in particular 7(a), 504, and microloans. • Under it, SBA will cover all loan payments on these SBA loans, including principal, interest, and fees, for six months. • This relief will also be available to new borrowers who take out loans within six months of the President signing the bill into law. • Each program has different eligibility requirements, see https://www.sba.gov/funding-programs/loans for more details. ItascaDV.org
ECONOMIC INJURY DISASTER LOANS & EMERGENCY ECONOMIC INJURY GRANTS • These grants provide an emergency advance of up to $10,000 to small businesses and private non-profits harmed by COVID-19 within three days of applying for an SBA Economic Injury Disaster Loan (EIDL). • To access the advance, you first apply for an EIDL and then request the advance. • The advance does not need to be repaid under any circumstance , and may be used to keep employees on payroll, to pay for sick leave, meet increased production costs due to supply chain disruptions, or pay business obligations, including debts, rent and mortgage payments. ItascaDV.org
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