Archive for the ‘ COVID-19 ’ Category

Operation: Stop The Spread!

September is the Minnesota Bankers Association’s Community Impact Month, and Citizens Bank Minnesota is once again proud to be participating!

This year we are focusing our efforts on “Stopping the Spread” and collecting items needed in schools to protect students and staff from COVID-19. 

If you are interested in donating, the following items are needed in classrooms:

  • Adult cloth masks or face shields
  • Youth cloth masks or face shields
  • White paper towels
  • Latex gloves, size Large & X-Large
  • Disinfectant Wipes
  • Hand Sanitizer

Monetary donations will also be accepted and used to purchase needed supplies.

Donations can be dropped off September 1st – 18th at any of our Citizens locations and the items will be distributed at our area schools.

Thank you for your support!

#BanksBuildMN

CARES Act Loans Program Update

Citizens Bank Minnesota continues to process Paycheck Protection Program (PPP) loans for those businesses that qualify and have not yet taken advantage of the program. So far Citizens has helped over 250 businesses with PPP loans to help their employees. Click HERE to visit our website for additional information on applying.

Also, the Small Business Association’s (SBA) Economic Injury Disaster Loan (EIDL) has re-opened, with funds currently available only to agriculture businesses with 500 employees or less.

Those interested may apply for a loan of up to $2 million, and at the end of the application form, applicants can request an advance of up to $10,000 ($1,000 per employee). The advance will be provided just days after the application has been submitted. The advance amount received doesn’t have to be repaid, even if you ultimately don’t qualify or decide to withdraw your EIDL application.

One important note is the amount of any EIDL advance received will be subtracted from the forgivable portion of PPP funds provided to the same applicant.
Unlike applying for the Paycheck Protection Program (PPP), which requires applicants to work with their lender, clients must directly apply for an EIDL through the SBA.To learn more or apply for an EIDL, visit the SBA website at: sba.gov/disaster .

New Ulm Economic Development Authority Approves $2500.00 Business Grants

The New Ulm Economic Development Authority has pledged grant money to widen the relief efforts of area businesses affected by COVID-19. Businesses that were directly impacted by Governor Walz’s Executive Orders 20-04 and 20-08 may now apply for $2500 grants per business affected. These funds are to help small business owners weather the storm until major funding can be distributed.

The business applicant must reside in the city of New Ulm, must have a commercial address (no home addresses or home businesses are eligible) and the applicant must be the business owner. Funds to the program are limited and applications will be processed on a first come, first served basis. Business owners are encouraged to apply promptly.

The Chamber of Commerce would also like to remind individuals that supporting local is very important during this crisis. Direct payments to individuals through the Federal Stimulus package would be best spent in New Ulm. The Chamber understands that all needs might not be met in New Ulm but encourages all citizens to spend as much locally as possible. Please help keep the local business community intact during COVID-19. Be New Ulm Strong. For more information on take-out and delivery from local restaurants, visit newulm.com.

Applications can be found online at NewUlm.com under the COVID-19 Resources Page or the City of New Ulm at ci.new-ulm.mn.us under their COVID-19 Information Page. Applicants that have questions about the application can direct inquires to Audra Shaneman at 507-233-2113 or email her at AundraS@newulmmn.gov.

Source: New Ulm Chamber of Commerce

Emergency Loan Program Applications Being Accepted

On Monday, March 23, the Minnesota Department of Employment and Economic Development (DEED) announced a Small Business Emergency Loan program to help business owners who are experiencing temporary cash flow shortages as a result of statewide orders to close restaurants, bars and other select public services.

Because of our long history of partnering with DEED in other lending programs, Southern Minnesota Initiative Foundation (SMIF) was chosen as one of nearly two dozen statewide organizations to accept Small Business Emergency Loan applications. 

Businesses located in SMIF’s 20-county region must submit applications directly to our SMIF lenders. See contact information below .

While the outline of DEED’s Small Business Emergency Loan program is available online, agency staff still are developing application approval criteria. For the time being our lenders are accepting applications and recording them in the order in which they are received. Loan consideration will start when DEED provides application approval criteria.

SMIF will require additional documentation before a loan application can be processed. We also strongly encourage applicants to confer with their bank about possible accommodations on existing loans.  

We understand the urgency of this situation for businesses across our region. We will do everything in our power to respond and act quickly to help our entrepreneurs and our communities. Please check our emergency response page for updates. We also will send email updates with criteria from DEED as soon as information becomes available.

Click HERE for the Emergency Loan Application.

Contact SMIF lenders with questions or to submit the application.

Source: Southern Minnesota Initiative Foundation

SBA COVID-19 Economic Injury Disaster Loan Program

Thanks to a concerted effort by the state of Minnesota and the SBA to contain the economic impact of Coronavirus, the state’s small businesses are now eligible for the SBA Economic Injury Disaster Loan Program and can apply for a loan online. For info and forms you’ll need, please read the info below before going online.

MORE ABOUT EIDL LOANS

  • This program can provide low-interest loans of up to $2 million to businesses and private non-profits.
  • These loans may be used to pay fixed debts, payroll, accounts payable and other bills. 
  • The current interest rate is 3.75% for small businesses; for non-profits is 2.75%.
  • These loans have long-term repayment options, up to a maximum of 30 years. Terms are determined on a case-by-case basis, based on borrower’s ability to repay.
  • Read the News Release regarding  MINNESOTA Declaration 16365 and Fact Sheet. 

EIDL LOAN TRAINING VIDEO NOW AVAILABLE

If you have questions on this loan and best practices for applying, watch this14 minute EIDL Application Training (link is external). Special thanks to the St. Paul Area Chamber of Commerce for helping us meet demand by hosting this video on their website. Our office is holding this same training twice daily and those are filling very quickly.

FILL OUT THESE FORMS FIRST!We HIGHLY recommend you complete your application online, do not mail it in. However, preparing these documents before you go to SBA.gov/disaster will streamline the process for you. Here’s a list of documents you’ll need to provide to complete the application: 

Need help filling out the application?  Watch our Training (link is external)download the slide deck, or Access these step-by-step instructions


STAY UPDATED

Other resources:

COVID-19 DEED Small Business Emergency Loan Fund

Small Business Emergency Loans following executive order 20-15, DEED has established a loan program to assist small businesses affected by Executive Orders 20-04 and 20-08 following the COVID-19 pandemic. Small businesses are a vital part of Minnesota’s economy and this program will provide a source of working capital to help businesses sustain operations during this challenging time.

  • Range from $2,500 to $35,000 and will be based on the firm’s economic injury and the financial need.
  • Be provided to Minnesota-based businesses only.
  • Be interest free.
  • Be paid back monthly over five years and the first payment will be deferred six months with potentially partial forgiveness.

DEED released their Small Business Emergency Loan fund applications. Please review the requirements below.
Eligibility

  • In order to be eligible for a Small Business Emergency Loan, businesses must be able to demonstrate that it was directly and adversely affected by the conditions that precipitated the emergency declaration as noted in Executive Orders 20-04 and 20-08.

The following businesses are noted in those Executive Orders:

  • Restaurants, food courts, cafes, coffeehouses, and other places of public accommodation offering food or beverage for on-premises consumption, excluding institutional or in-house food cafeterias that serve residents, employees, and clients of businesses, child care facilities, hospitals, and longterm care facilities.
  • Bars, taverns, brew pubs, breweries, microbreweries, distilleries, wineries, tasting rooms, clubs, and other places of public accommodation offering alcoholic beverages for on-premises consumption.
  • Hookah bars, cigar bars, and vaping lounges offering their products for on premises consumption.
  • Theaters, cinemas, indoor and outdoor performance venues, and museums.
  • Gymnasiums, fitness centers, recreation centers, indoor sports facilities, indoor exercise facilities, exercise studios, and spas tanning establishments, body art establishments, tattoo parlors, piercing parlors, businesses offering massage therapy or similar body work, spas, salons, nail salons, cosmetology salons, esthetician salons, advanced practice esthetician salons, eyelash salons, and barber shops. This includes, but is not limited to, all salons and shops licensed by the Minnesota Board of Cosmetologist Examiners and the Minnesota Board of Barber Examiners.
  • Amusement parks, arcades, bingo halls, bowling alleys, indoor climbing facilities, skating rinks, trampoline parks, and other similar recreational or entertainment facilities.
  • Country clubs, golf clubs, boating or yacht clubs, sports or athletic clubs, and dining clubs.

To qualify, the businesses must:

  • Be current on financial obligations as of March 1, 2020
  • Be an existing small business (whatever the form of their organization)
  • Have been operating in Minnesota for at least one year
  • Be willing to provide collateral or personal guarantee for at least 20% of loan
  • Have been denied credit by a lender and have sought or be in the process of seeking, SBA Economic Injury Disaster Loan assistance.
  • Pay-off the emergency loan if financing is received subsequent to loan approval.

Loans cannot be provided to businesses that:

  • Derive income from passive investments without operational ties to operating businesses
  • Generate any part of its income from gambling or adult-oriented activities
  • Have no current or historical financial statements

Citizens Bank Minnesota is here for you! Our lenders are only an email, phone call away. Please do not hesitate to reach out to us with any questions or concerns you may have. Our lenders are listed by branch below.

Member FDIC

SBA Disaster Assistance in Response to the Coronavirus

SBA’s Economic Injury Disaster Loans [EIDL] offer up to $2 million in assistance and can provide vital small businesses and private non-profits to help overcome the temporary loss of revenue. These loans are only intended as working capital loans to assist with the impact caused by the coronavirus emergency. Loan funds may be used to pay fixed debts, accounts payable and other bills that can’t be paid because of the disaster’s impact. 

Interest rates are 3.75% for small businesses and 2.75% for non-profits. 

Loans are offered with long-term repayments in order to keep payments affordable; loans can go up to a maximum of 30 years. Terms are determined on a case-by-case basis, based upon the borrower’s ability to repay. 

Visit www.sba.gov/disaster for more information. For additional information, you may contact the SBA disaster assistance customer service center. Call 1-800-659-2955 (TTY: 1-800-877-8339) or email disastercustomerservice@sba.gov

For an EIDL application: 
Electronic – Go to https://disasterloan.sba.gov/ela/
1.  Select Apply Online
2.  Register; in the future use LOGIN
3.  They are suggesting that you apply from 7:00 pm to 7:00 am due to
the high volume.
4.  They state that some users are having problems with CHROME;
suggest that you use EDGE or INTERNET EXPLORER  
5. APPLY 

Paper – While electronic filing is easier, faster and more accurate, paper loan applications can be downloaded from www.sba.gov/disaster. 
Completed application should be mailed to:  
U.S. Small Business Administration
Processing and Disbursement Center
14925 Kingsport Road
Fort Worth, TX 76155
 
Disaster loan information and application forms can also be obtained by calling the SBA’s Customer Service Center at 1-800-659-2955 (1-800-877-8339 for the deaf and hard-of-hearing) or by sending an email to disastercustomerservice@sba.gov

These are the FORMS that will be needed: 
1.   Completed SBA loan application [SBA Form 5] for partnerships, corporations, limited partnerships, nonprofits, limited liability entity – information needed for Form 5:
• Organization type and legal name; Trade Name if any [Secretary of
State registration]
• EIN
• Address and phone numbers
• Date business established
• Number of employees [pre-disaster]
• Insurance coverage [if any] coverage type, name of company and
agent
• Owners – names; title; % owned; SSN; marital status, DOB, POB, phone
number, address 
2.   Completed SBA loan application [SBA Form 5c] for sole proprietorships – information needed for Form 5:
• Legal names; EIN; DOB; POB; marital status
• Address; phone numbers; emails
• Debts – mortgages, installment loans, student loans, credit cards,
insurance, real estate taxes
• Number of employees [pre-disaster]
• Insurance coverage [if any], coverage type, name of company and
agent, policy number
• Assets 
3.   Tax Information Authorization [IRS Form 4506T] for the applicant, principals owning 20% or more of the applicant business, each general partner or managing member, and for any owner who has greater than 50% ownership in an affiliate business. Affiliates include, but are not limited to, business parents, subsidiaries, and/or other businesses with common ownership or management. Information needed:
• Names on tax return
• SSN or EIN
• Current name/address
• Previous address if different
• NOTE: WHEN YOU COMPLETE THIS FORM, IT IS EASIER IF YOU HAVE
THE LAST FEDERAL TAX RETURNS AT HAND. 
4.   Schedule of Liabilities [SBA Form 2202] – list all notes, mortgages and accounts payable. Specific information needed:
• Name of Creditor
• Original Amount
• Original Date
• Current Balance
• Current or Delinquent?
• Maturity Date
• Payment Amount [month-year]
• How secured 
5.   Personal Financial Statement [SBA Form 413] information required:
•Assets
• Liabilities
• Income 
6.   Monthly sales [SBA Form 1368] – information needed:
• Monthly sales figures beginning 3 years prior to disaster and
continuing through the most recent month available
• If not in business for 3 years, complete estimate on page 2
• Add narrative as you see needed  

These are the ATTACHMENTS that will be needed:
1.  Complete copies of the most recent Federal Income Tax Return for the applicant [business]
2.  Complete copy, including all schedules, of the most recent Federal income tax return for principals. General partners or managing member, and affiliates.
3.  If the most recent Federal income tax return has not been filed, a year-end profit and loss statement and balance sheet for the year
4.  A current year-to-date profit and loss statement [within 90 days]
5.  Projections [possible]  

Resources: SBA Economic Injury Disaster Loan website: www.disasterloan.sba.gov/ela/MN State SBDC website: www.mn.gov/deed/business/help/sbdc/West Central MN SBDC website: www.westcentralmnsbdc.com 
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