7.8. EDSR 08-17-2020 Request for Action
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To Item Number
Economic Development Authority 7.8
Agenda Section Meeting Date Prepared by
General Business August 17, 2020 Amanda Othoudt,EDD
Item Description Reviewed by
COVID-19 Small Business Emergency Cal Portner, City Administrator
Microloan Program Update Reviewed by
Action Requested
Provide direction to staff on the COVID-19 Small Business Emergency Microloan Program.
Background/Discussion
At their May 18, 2020, meeting,the EDA established the COVID-19 Small Business Emergency Microloan
Program to assist small businesses and allocated up to $200,000 from the Economic Development Business
Microloan program as the source of funding. The program was designed to offer zero interest loans up to
$20,000, amortized over 10 years,payments deferred for 6-months to businesses which includes a forgivable loan
component for up to $5,000 in property tax relief.
Following the establishment of this program, Governor Tim Walz authorized funds provided by Congress
through passage of the Coronavirus Aid, Relief, and Economic Security Act (CARES Act) to states and local
governments to cover costs associated with the COVID-19 pandemic.
At their July 20, 2020, meeting, the EDA directed staff to recover costs associated with the COVID-19 Small
Business Emergency microloan program through the CARES Act if there are funds available. Based on the
direction at the last meeting, staff worked with our EDA attorney to modify the program so that the EDA could
reimburse themselves through the CARES Act. We planned to present this information to the EDA this evening.
It has since come to my attention that the city has identified potential expenditures which will utilize nearly all the
designated CARES Act funds recently allocated to the city. Provided there are funds still available after these
important expenditures,the EDA may pass a resolution modifying the COVID-19 Small Business Emergency
Microloan program. Funds must be expended by November 15, 2020.
If the EDA continues to fund the program without reimbursement from the CARES Act,the EDA will have
maximum flexibility in determining the businesses eligible for assistance. This would require the EDA attorney to
draft new language which would not be ready this evening.
Staff is looking for direction on how you would like to proceed.
1.) Keep the program as is, and if there is money left over after the identified expenditures,the EDA can request
that the City Council pass a resolution prior to Nov 15 to allow the EDA to reimburse themselves through
the CARES Act.
The Elk River Vision PONE H E o s Y
A �arelcoming community avith revolutionary and spirited resourcefulness, exceptional INAV
service, and community engagement that encourages and inspires prosperity. Updated.August 2020
2.) Work with our EDA attorney to modify the program language and remove the CARES language and allow
maximum flexibility in the businesses eligible for assistance, knowing that these expenditures may or may not be
reimbursable through the CARES Act.
Financial Impact
N/A
Mission/Policy/Goal
The City of Elk River Economic Development Authority (EDA) has developed the small business emergency
assistance microloan program to provide financial assistance to locally owned and operated businesses adversely
impacted by the COVID-19 pandemic.
Attachments
■ Small Business Programs Summary
■ COVID-19 Small Business Emergency Microloan Program
Andover EDA
• Eligibility
o In business by 3.1.20.
o No more than 50 FTE employees.
o Non-profits eligible to apply as well.
o Must have physical address in the city.
o Must be registered with Sec. of State in good standing with no delinquent taxes,
bills, or charges from city from 2.1.20 or prior.
o Eligible businesses include those that have been deemed non-essential or which
faced mandated closures per Exec. Orders.
o Eligible expenses include fixed debts, payroll costs, accounts payable, utility
payments, inventory costs.
• Exclusions
o Businesses that don't qualify above.
• Aid
o Grants for"actual loss"up to $50,000.
• Restrictions
o May not be used for agriculture, purchasing machinery/vehicles,moving expenses,
land acquisition, property taxes, or normal expenses that would have occurred
without pandemic.
• Process
o Application deadline of 8.17—approvals to be given at 9.1. EDA meeting.
• Application
o Asks for basic information about businesses, how Covid-19 has impacted
businesses, how they intend to use the grant funds, etc.
o Evidence that business owns or leases the premises, proof of eligible expenses to
be paid with grant funds, W-9 form, and other supporting documentation.
o Business must execute Grant Agreement that indemnifies city and certifies that
business will use funds for eligible purposes only.
• Enforcement
o All recipients must submit brief report to Andover EDA 60 days after date of the
executed grant agreement.
Bloomington— Forgivable Loan Program
• Eligibility
o Must have physical location within Bloomington.
o Employ 1-20 persons at the location address.
o Annual gross revenues cannot exceed $2,000,000.
o Legal entity permitted to do business in Minnesota.
o In compliance with codes, licensing, and no unpaid tax bills to charges due to the
city.
• Exclusions
o Gambling, adult entertainment, lobbying, pyramid businesses, billboards,
agriculture, purchasing of machinery or vehicles.
• Restrictions
o May not be used for agriculture,purchasing machinery/vehicles,moving expenses,
land acquisition, property taxes, or normal expenses that would have occurred
without pandemic.
• Aid
o $1,000,000 available to small businesses, $300,000 to self-employed or
independent contractors. Max of $7,500 to businesses and $3,000 for self-
employed or ind. contractors.
• Process
o Random selection, after selection must provide most recent tax return, estimated
budget for use of forgivable loan funds for working capital, IRS form 941 or 1099-
MISC form, articles or incorporation, and proof of address.
o Loan agreement required that indemnifies city and port authority.
• Application
o Online application that asks basics to determine initial eligibility.
• Enforcement
o Nothing specific in the program guidelines.
Bit Lake EDA
• Eligibility
o Small businesses that have been deemed non-essential or have faced mandated
closures per Exec. Orders or can demonstrate business interruption from Covid-19.
o Non-profits may be allowed to apply if they can demonstrate the same.
o Been in business by 3.1.20.
o Have no more than 100 FTE employees at location address.
o Must have physical address within the city. Proof of address required.
o Must be allowed use or legal non-conforming use.
o Registered and in good standing with Sec. of State, no delinquent taxes or charges
due to city from 2.1.20 or prior.
o Must demonstrate how funds will be used to assist in recovery.
o Using other funds does not disqualify and applicant.
• Exclusions
o None specifically mentioned.
• Restrictions
o May not be used for agriculture, purchasing machinery/vehicles, moving expenses,
land acquisition, or property taxes.
• Aid
o Amount of grants not specified in program documents.
• Process
o Applications accepted until 8.5.20, approved at EDA meeting 8.17.20.
• Application
o Asks for basics about business, also requires supporting documentation of:
evidence that business owns or leases space, proof of eligible expenses requested
to be paid with grant funds (fixed debts, payroll costs, accounts payable, utility
payments, inventory costs, and other critical expenses), W-9 Form, and any other
supporting docs.
o Applicant acknowledgement — holds EDA and officers/consultants harmless,
understand grants can only be used for eligible expenses, and certifies it will be
bound by program guidelines.
o Requires Grant Agreement after selection.
• Enforcement
o Grant recipients must submit a report 60 days after grant agreement that specifies
how funds were used.
Worthington (Proposal)—Partnership with Nobles County. and City of Worthington, funds
distributed through the Worthington EDA.
• Eligibility
0 10% revenue loss year-over-year between 3.1.19 and 5.31.20 or
o Have been restricted from operating above 50% capacity by executive orders.
0 50 or less full-time equivalent employees.
o Permanent physical location within city.
o Legally operating within city and current in property taxes with city and county.
• Exclusions
o Nonprofits and home-based businesses
• Aid
o Granted on "up to basis," up to $5,000 for Tier 1 employers (0-5 FTES), up to
$7,500 for Tier 2 employers (6-24 FTEs), and up to $10,000 for Tier 3 employers
(25-50 FTEs).
• Restrictions
o Funds can only be used for operating expenses after 3.1.20.
o Funds cannot be used for capital expenses, including business acquisition and land
purchases.
o Funds cannot be used to pay back taxes, including property taxes
• Process
o One-month application window, not first-come, first-serve
o Funds allocated equally among eligible applicants if there are not enough funds to
give every eligible business in the Tier the full "up to" amount.
• Application
o Owner, Business Location, Mailing Address, Number of FTEs, Active Business
Registration with SOS, Tax Liens from Nobles County or State of MN, and two
main eligibility requirements.
o Must have copy of SOS filing for the business for application to be complete.
o Affidavit from business owner that confirms eligibility and that funds will only be
used for eligible expenses.
• Enforcement
o Random audits by City of Worthington
West St. Paul
• Eligibility
o Creates 5 tiers for priority — Tier 1 is for bars/restaurants with four or fewer
locations, other four tiers based on revenue and number of employees. Tiers 2-5
are further divided into subtiers based on whether they received county funding.
o Eligible expenses—costs of"mothballing"business to include utility, licensing, or
similar costs during period business was not in operation.
o Costs to retrofit business to improve pandemic safety.
o Improvements to buildings or land to respond to orders for social distancing for
partial reopening.
o Business must certify that expenditures are necessary/due to public health
emergency, unaccounted for and not previously budgeted, and incurred between
3.1.20 and 11.15.20.
0 501(c)(3) nonprofit businesses are eligible applicants.
• Exclusions
• Aid
o Grants are provided up to $10,000.
• Restrictions
o Cannot be used for pandemic related expenses that have been or will be reimbursed
by any federal, state, or county program.
• Process
o Application deadline is 9.4.20
o City may allow amendments of the request or granted amount should such be
deemed necessary.
• Application
o Must provide information to support what Tier the business operates under.
o Must include proposal for expenditures that have occurred during the covered
period. Support for expenditures such as receipts, evidence of bill payment, and
bid documentation are required.
o Certification that grant funds applied for have not been reimbursed by any other
federal, state, county, insurance or third-party funder.
• Enforcement
o None listed in the documents provided.
Lakeville
• Eligibility
o Locally owned and operated for-profit business with physical establishment in the
City of Lakeville.
o At least one employee in addition to owner as of 3.1.20 and not more than 25 FTEs,
and under $1 million in annual revenue.
o Been in operation as of 12.1.19.
o Licensed, in good standing, current on property taxes prior to 7.15.20.
o Must be able to demonstrate a significant loss in revenue since 3.15.20.
• Exclusions
o Home-based businesses, except in-home childcare.
o Nonprofits.
o Corporate-owned chains (franchises ok).
o Those receiving aid under pandemic assistance program
o Businesses in default conditions prior to 2.29.20.
o Businesses that primarily derive income from gambling.
o Businesses that derive entertainment from adult entertainment.
o Businesses that derive income from passive investments; property rentals or
management; billboards; lobbying.
o No duplicative aid for those receiving funds from Dakota County CDA funds or
State of Minnesota funds.
• Aid
o Grants of up to $10,000.
• Restrictions
• Process
0 10-day application window, not first-come, first-serve basis
o If eligible and approved, applicants must submit 2019 tax return and evidence of
revenue loss related to Covid-19. Suggestions are sales tax reporting, period
statements, merchant services statements, and point of sale register reports. This
must be done within 10 days after selection. Also evidence of employment prior
to 3.1.20.
• Application
o Online application (haps://www.lakevillemn.gov/FormCenter/Communications-
5/Small-Business-Emergency-Grant-Program-A-118).
• Enforcement
o No enforcement listed in documents reviewed.
Burnsville
• Eligibility
o Private, for-profit businesses located and operated in Burnsville.
o Good standing with MN Revenue, Sec. of State, and city as of 3.1.20.
o Demonstrate adverse affected by Exec. Orders related to Covid-19 business
restrictions.
o Demonstrate financial hardship as a result of Covid-19.
o Includes home-based businesses and franchises.
o May apply if receiving or applying for other federal funding.
o Burnsville gave $50,000 each to 3 nonprofit community development groups
as well.
• Exclusions
o Businesses with passive investments without ties to operating business; speculative
businesses.
o Those that have received state or county CARES small business funding.
o National or corporate chains.
o Businesses in default prior to 2.29.20.
o Permanently shuttered or closed businesses where funding would not make them
operational within 21 days.
• Aid
o $ 1 million allocated for program.
o Up to $20,000 per business.
• Restrictions
o Funds cannot be used for lost revenues.
o Funds used for operating expenses, including payroll, lease/mortgage, supplier
payments, or other critical business expenses including consulting to modify
business practices.
• Process
0 10-day application window, not first-come, first-serve basis
o If eligible and approved, applicants must submit 2019 tax return and evidence of
revenue loss related to Covid-19. Suggestions are sales tax reporting, period
statements, merchant services statements, and point of sale register reports. This
must be done within 10 days after selection. Also evidence of employment prior
to 3.1.20.
• Application
o https://burnsvillecares.burnsvillemn.g v/
o Online application asks for W-9, most recent year tax return, cash flow statements
and itemized expense report for March—June 2020.
o Landlord on leased premises that business was current on rent as of 3.16.2020.
o Proof of eligible expenses from 3.15 to 11.15—payroll documentation, mortgage/rent
statements, insurance statements, other invoices.
o Acknowledgement Form—holds city and its consultants harmless from any and all
claims arising from CARES Act funds, data is public.
o Grant funds only used for eligible expenses.
• Enforcement
o Use of funds subject to verification to ensure compliance as required under the
CARES Act.
o Certification of expenses form submitted to city with application for previously
incurred expenses, or by 11.30.20 for future incurred expenses.
Scott Countv Community Development(City of Savage Collaboration —Savage gave money
to Scott County to grant to Savage small businesses through the county program.
• Eligibility
o Locally owned and operated for-profit business with physical establishment in
Scott County.
o Employ between 3 to 20 W-2 eligible employees prior to 3.1.20.
o Under $1 million in annual revenue.
o In operation for 6 months prior to 3.1.20.
o Licensed, in good standing, and not have delinquent taxes.
o Demonstrate a significant loss in revenue since 3.15.20.
• Exclusions
o Home-based businesses or without physical establishment.
o Non-profits.
o Self-employed, ind. contractors, businesses without employees.
o Corporate chains, or not owned by Scott County resident.
o Primarily derive income from tobacco, gambling, adult entertainment,pawn shops.
o Businesses that derive income from passive investments.
o No duplication of state and local aid —those that received funds from MN Small
Business Emergency Loan are not eligible.
• Aid
o One-time forgivable loan up to $5,000, based on economic injury from Covid-19.
0 0% interest, 12-month term, deferred payments for 12 months.
0 100% forgivable after 12 months provided business continues to operate in Scott
County in good standing.
o Up to $20,000 per business.
• Restrictions
o None specifically listed.
• Process
0 10-day application window, not first-come, first-serve basis
o If eligible and approved, applicants must submit 2019 tax return and evidence of
revenue loss related to Covid-19. Suggestions are sales tax reporting, period
statements, merchant services statements, and point of sale register reports. This
must be done within 10 days after selection. Also evidence of employment prior to
3.1.20.
• Application
o Online application (already closed).
o Within 5 business days of application being accepted, need to submit 2019 tax return
now or later if not completed, but must be submitted for loan forgiveness.
o Evidence of revenue loss — sales tax reporting, period statements, merchant services
statements, and point of sale reports.
o Evidence of employment prior to 3.1.20.
• Enforcement
o None detailed in program flyer.
Kandiyohi County& City of Willmar Economic Development Commission
• Eligibility
o For-profit businesses that can demonstrate business losses.
o Gross revenue reduction of least 25% between 3.1.2020 and 5.30.2020.
o Small businesses with up to 50 FTEs. Employees for program may be either W-2
or ind. contractors.
o Physical, commercial location in Kandiyohi county.
o Registered with Sec. of State and operating since 3.1.19.
o Businesses eligible to apply for funding from only one local unit of government.
o Nonprofits can apply for up to $50,000 in funding based on need, except for
religious groups, lobbying/political groups, and organizations that restrict
activity based on gender, ethnicity, orientation,or ability.
• Exclusions
o Banks, law firms, accounting firms, utilities, chain convenience stores, rental
properties, agriculture,insurance agencies, financial advisors,passive investments.
• Aid
o Eligible applicants may request up to $15,000 in grant funding.
• Restrictions
o Cannot receive grant funding through more than one local unit of government.
o Cannot be used to pay property taxes.
o Need to show itemized expenses—receipts are required for expenses over $250.
• Process
o First-come, first-serve basis.
o Acted on by EDC finance committee and board of commissioners.
• Application
o Asks for what purpose funds will be used, giving PPE, rent/mortgage, utilities,
insurance, or other regular expenses as examples.
o Asks for other funding sources.
o Asks for principals of the business.
o Also copy of most recent tax return, current business filing with Sec. of State, income
and expense statements from second quarter 2019 and second quarter 2020.
• Enforcement
o Grant recipients must provide documentation of how funds were spent within 60 days
following grant disbursal.
Dakota County CDA
• Eligibility
o Must be locally owned and operated for-profit organization with physical location
in Dakota County.
o Majority owned by permanent resident of Minnesota.
o Good standing with MN Dept. of Revenue, Sec. of State, county, and city.
o Demonstrate the business was adversely affected by Exec. Orders related to Covid-
19, or demonstrate financial hardship.
o Financial hardship defined as 10% drop in gross revenues between 3.1.19—5.31.19
vs. same period in 2020.
• Exclusions
o Businesses with no physical location in county.
o Home-based businesses, non-profits, adult-oriented businesses, passive investment
businesses, speculative businesses, pyramid companies, gambling operations,
businesses that earn more than half revenue from lending.
o Businesses that received funds through state small business emergency loan or
DEED small business relief grants are not eligible.
• Aid
o Grants of up to $10,000 based on economic hardship.
• Restrictions
o Funds must be used exclusively for up to 3 months of operating expenses, including
payroll, rent/lease payments, mortgage payments, utilities, payments to suppliers,
or other critical business expenses as determined by program admin.
• Process
o Application window is 7.27—8.14.
o If applications exceed funding, lottery process will be used.
• Application
o If selected, business must provide following within five days:
o Revenue verification—2019 tax return
o Impact and loss of revenue verification.
o Employee verification
o Evidence of grant-eligible expenses over past three months.
• Enforcement
o Requires grant recipients to show how the funds were spent by 1.31.2021.
Marshall EDA—Reimbursement Program
• Eligibility
o Physical, commercial location in Marshall.
o Registered with Sec. of State and in business since 3.1.19, current with property
taxes.
o Non-profits also eligible for funding.
o Demonstrated negative impact by business interruptions since 3.1.20 due to Covid-
19.
o Revenue statement from 3.1.19—7.1.19 vs. same from 2020.
o Preference goes to businesses closed by Exec. Orders 20-04 and 20-08.
• Exclusions
o Not available to businesses that received MN DEED Small Business Grant.
o Not available to home-based businesses.
• Aid
o Maximum $5,000 grant for 1-15 FTEs, maximum of$2,500 for non-profits.
o $500,000 in total funding available.
o Used for payroll, rent or lease payments, utilities, equipment costs or rental,
working capital or other business critical operating expenses, expenses related to
reopening plan and for promoting social distancing.
• Restrictions
o Cannot be used to cover same expenses as SBA EIDL or PPP loans.
• Process
o Applications accepted until 8.21.20.
o Lotter selection for first round.
• Application
o Short application—after approval, must sign participation agreement.
o Submit all receipts and proof of payment by 10.15.20.
o W-9 form.
• Enforcement
o None listed in program guide.
13065 Orono Parkway
Elk River, MN 55330
763.635.1000
ElkRiverMN.gov
COVID-19 Small Business
Emergency Microloan Program
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COVID-19 Small Business Emergency Microloan Program
Purpose
The City of Elk River Economic Development Authority (EDA) has developed the small business
emergency assistance microloan program to provide financial assistance to locally owned and operated
businesses adversely impacted by the COVID-19 pandemic.
Eligibility
The COVID-19 Small Business Emergency Microloan Program is available to locally owned and
operated small businesses located within the City of Elk River.
1. Eligible business types include locally owned and operated businesses noted in
Executive Orders 20-04 and 20-08, including but not limited to:
a. Restaurants, cafes, coffeehouses, and other places of public accommodation
offering food or beverage for on-premises consumption
b. Taverns, brew pubs, microbreweries, distilleries, wineries, tasting rooms and
other places of public accommodation offering alcoholic beverages for on-
premises consumption
c. Gymnasiums, fitness centers, indoor sports facilities, indoor exercise facilities,
exercise studios, businesses offering massage therapy or similar body work,
spas, salons, nail salons, cosmetology 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.
d. Art and music studios
e. Bowling alleys, skating rinks and other similar recreational or entertainment
facilities
f. Other businesses deemed nonessential under executive orders adopted by the
Governor of the State of Minnesota
g. Other businesses as approved by the EDA
2. The business must have been in operation prior to the Governor’s Executive Order
3. Be a legal entity registered with the Office of the Minnesota Secretary of State and be
in good standing
4. Be a conforming or legally nonconforming use under the current city zoning
regulations of the city
5. Not be in violation of the city’s zoning code
6. Be in compliance with city ordinances, codes, licensing, and must not have any
delinquent taxes, bills, or other charges due to the city
Amount: Up to $20,000 Loan
Up to $5,000 in Property Tax Relief
Application Fee: Waived
Equity: None
Rate: Fixed at 0%
Term: Loans will be payable over 5 years and will be amortized over a period of 10 years.
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Payment: Loan is deferred for 6 months upon approval of the loan agreement.
Forgivable: Up to $5,000 is eligible for forgiveness for property tax relief for taxes payable in 2020.
Lease or ownership documentation is required. Forgiveness for property tax relief will be granted if
the Borrower has met the reporting requirements listed below.
Extension: In the event the Borrower is unable to obtain conventional financing to replace the
Microloan at the end of five years, the loan may be extended up to two additional years at a market
rate of interest.
Collateral: Loans must be supported by sufficient collateral, which will include personal guarantees
and/or corporate guarantees.
Supporting Documentation:
1. Proof of ownership or signed lease.
2. Proof of submittal, acceptance, approval and/or denial of SBA and DEED loan
applications (not absolutely required)
3. Copy of page from business’s most recent federal tax return indicating gross receipts or
sales
4. A W-9 form (with signature)
5. Other supporting documentation you wish to provide to the EDA to assist in
understanding the applicant’s situation.
6. Narrative descriptions and estimated calculations of the negative impacts on the business
due to COVID-19
7. Description of costs to be paid with the proceeds of the loan
8. Narrative description of the plans for resuming operations following the COVID-19
crisis
Permitted Fund Uses:
Awarded funds may be used exclusively for current payroll obligations (may not include employees
who have been laid off), lease or mortgage payments, utilities, accounts payable, property taxes and
other critical business expenses that can’t be paid as a direct result of the COVID-19 pandemic.
Awarded funds may not be used for business owner’s/manager’s personal uses or expenses.
Ineligible Fund Uses:
Assistance cannot be provided to businesses or nonprofits that:
1. Do not have a physical business address within the City of Elk River
2. Are home-based businesses
3. Derive income from passive investments without operational ties to operating businesses
4. Primarily generate income from gambling activities
5. Generate any part of its income from adult-oriented or tobacco/vaping-related activities
6. Have no current or historical financial statements
7. Previously received emergency funds from the EDA
Fund Availability:
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Funds are granted on a first come, first serve basis and will be provided until the funds are exhausted
or the city-declared state of emergency declaration is lifted, whichever comes first.
Reporting:
As a condition for receiving funding, all recipients are required to submit a brief report to the EDA
within sixty (60 days of receiving funds, specifying how the funds were used and providing evidence
in the form of paid invoices, statements or similar documentation.
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COVID-19 Small Business Emergency Microloan
Program Application
Applicant Information
DBA - Legal Name of the Business: _______________________________________________
Sole Proprietorship Partnership Corporation LLC
Length of Time in
Business
Years
Months
Fed
Tax Id#
MN State
License
Mailing Address City Zip
Location Address City Zip
Business Phone ( ) Business Fax ( )
E-Mail Address Web Address
Contact Name Title
Is your business
currently registered
with the Minnesota
Secretary of State?
Is your business
currently in good
standing with the
Minnesota
Secretary of State?
Amount of Funding
Requested
$______ - Loan
$_______ -
Forgivable Loan
(Property Tax Relief)
Total number of employees: _______
The number of your employees
who have been impacted by the
Governor’s Executive Orders? _______
Was your business subject to the Governor’s Executive Orders 20-04 and 20-08? How has
the Governor’s Executive Orders financially affected your business?
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For what purpose will these funds be used? Please include proposed expenses up to the
total funding request. (For example: lease expenses for June ($2,000), payroll for
employees, utilities, etc).
Describe plans for resuming operations following the COVID-19 crisis.
Principal #1
Name
Address City ZIP
Percentage of Ownership ______%
Principal #2
Name
Address City ZIP
Percentage of Ownership ______%
Primary Lender
Name Phone Ref#
Address Fax
Contact Title
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Eligible Applicants
All eligible business categories must be referenced in Governor Walz’s Executive Orders
(EO 20-04 and EO 20-08).
Must have a physical, commercial location, whether owned or leased, that is located in city
limits of Elk River, MN.
Must be registered with the Minnesota Secretary of State.
Must be current with Sherburne County property taxes.
Application Requirements
The "COVID-19 Small Business Emergency Microloan Program" application must be
completed in its entirety by the applicant and submitted to:**
City of Elk River
13065 Orono Parkway
Elk River, MN 55330
Electronic submissions are also accepted to aothoudt@elkrivermn.gov
All loans will be subject to the EDA’s COVID-19 Small Business Emergency Microloan
Program.**
Applications will be considered on by the Joint Finance Committee and acted on by the
EDA.**
The most recent federal tax return filed by the business indicating gross receipts of sales.
Income statements and balance sheets for the past year or current within 90 days, if the
business has been in business less than one year.
Proof of ownership or signed lease.**
Proof of submittal, acceptance, approval and/or denial of SBA and DEED loan applications
(not absolutely required).
A W-9 form (with signature).**
Other supporting information requested from staff to review eligibility.**
If funds are awarded, a brief report to the EDA within two months after receiving funds,
specifying how the funds were used and providing evidence in the form of paid invoices,
statements or similar documentation.**
**Only needed for property tax relief
Applicant Acknowledgement:
The applicant shall hold the EDA, its officers, consultants, attorneys, and agents harmless
from any and all claims arising from or in connection with the COVID-19 Small Business
Emergency Microloan Program or its application, including but not limited to, any legal or
actual violations of any state or federal laws.
The applicant recognizes and agrees that the EDA retains absolute authority and discretion
to decide whether or not to accept or deny any particular application, and that all
expenditures, obligations, costs, fees, or liabilities incurred by the Applicant in connection
with the application are incurred by the applicant at its sole risk and expense.
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The applicant acknowledges that they have read the COVID-19 Small Business Emergency
Microloan Program guidelines and understands that if the application is approved for
funding, loan funds awarded must only be used to pay eligible expenses.
Data Privacy Notice: The city and the EDA are subject to Minnesota Statutes Chapter 13 (the
“Minnesota Government Data Practices Act”). The application shall become the property of the city
and/or EDA and is subject to the Minnesota Government Data Practices Act.
LOAN PROGRAM POLICY
AUTHORIZATION FOR RELEASE OF INFORMATION
I declare that the information provided in this application and on the accompanying exhibits is true and complete to the best of my knowledge. I agree to be bound by all terms and conditions of the COVID-19 Small Business Emergency Microloan Program. The City of Elk River Economic Development Authority has the right to verify any information contained in this application, including credit reports on the individuals and the business, and may contact any individuals and institutions involved with the proposed project. The lenders named herein have the right to share information with the EDA, its Finance Committee and boards as is necessary to approve the application for its loan funds.
Signature/Title of Applicant: ___________________________________Date: ___________
Signature/Title of Applicant: _______________________ ____________Date: ___________
Applicants are encouraged to review the Governor’s Executive Orders 20-04 and 20-08 for
further definition and clarification of businesses that are or are not eligible for this COVID-
19 Small Business Emergency Microloan. The EDA retains final authority to determine if a
business is eligible or not, and whether to approve a loan or not.
For questions, call 763.635.1042 or cell at 763.218.2766 or email aothoudt@elkrivermn.gov.
COVID-19 Small Business Emergency Microloan Program
Policy History
Adopted by: On (date) Item #
EDA 5/18/2020 7.2