COVID-19 Business Assistance Loan

COVID-19 Business Assistance Loan Policy

It is the mission of Meeker County Economic Development Authority (MCEDA) to assist in stimulating the economy of the Meeker County area and improving the overall County business environment.

During this time of uncertain and stressful economic conditions associated with the current COVID-19 pandemic, MCEDA has decided it is in the best interest of the County and its businesses to create an emergency assistance fund for those businesses that have been forced to close or significantly reduce their operations due to the Governor of Minnesota issuing executive orders for businesses to cease operations that are considered to have a greater potential for community spread of the COVID-19 virus.

MCEDA shall disclose no information, recommendations or statements made by any individual (including a loan officer, MCEDA staff person, or MCEDA Board Member). No information may be divulged directly or indirectly to any applicant, or to any of its representatives or any other unauthorized individual.

1. Goals and Objectives

Ensure that all loans will be paid back
Ensure that all loans will be good for the County and assist with business survival during this pandemic
Provide emergency financing for businesses that are suffering financial hardships due to the COVID-19 business restrictions

2. Eligible Applicants

Businesses cited in Governor’s Emergency Executive Order 20-04 as follows:

Beginning no later than March 17, 2020 at 5:00 pm, and continuing until March 27, 2020 at 5:00 pm, the following places of public accommodation are closed to ingress, egress, use, and occupancy by members of the public:

a. 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 long-term care facilities.

b. Bars, taverns, brew pubs, breweries, microbreweries, distilleries, wineries, tasting rooms, clubs, and other places of public accommodation offering alcoholic beverages for on-premises consumption.

c. Hookah bars, cigar bars, and vaping lounges offering their products for on-premises consumption.

d. Theaters, cinemas, indoor and outdoor performance venues, and museums.

e. Gymnasiums, fitness centers, recreation centers, indoor sports facilities, indoor exercise facilities, exercise studios, and spas.

f. Amusement parks, arcades, bingo halls, bowling alleys, indoor climbing facilities, skating rinks, trampoline parks, and other similar recreational or entertainment facilities.

g. Country clubs, golf clubs, boating or yacht clubs, sports or athletic clubs, and dining clubs.

And those businesses cited in Governor’s Emergency Executive Order 20-08 as follows:

Paragraph 1.e. of Executive Order 20-04 is amended by the following additions (indicated by underlined text) and deletions (indicated by strikethroughs): 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 Meeker County Economic Development Authority Page 2 of 4 shops licensed by the Minnesota Board of Cosmetologist Examiners and the Minnesota Board of Barber Examiners. All other provisions of Executive Order 20-04 remain in effect.

Eligible businesses will include those specifically named in Executive Order 20-04 and 20-08 as well as any other business that closed as a result of shelter in place orders or based on recommendations from licensing agencies. Businesses that were not forced into closing, but are facing severe financial hardship are also eligible to apply. Businesses must provide financials that illustrate a minimum 50% decline in profits to illustrate financial hardship due to COVID-19.
All applicants must have a physical, commercial approved location, whether leased or owned, that is located within Meeker County.
All applicants must be current with Meeker County property taxes

Applicants are encouraged to review Governor’s Emergency Orders 20-04 and 20-08 for further definition and clarification of businesses that are or are not eligible for this COVID-19 Business Assistance Loan. MCEDA retains final authority to determine if a business is eligible or not.

3. Eligible Loan Activities

Operating Capital to assist the business with sustaining itself until longer-term assistance programs area available.
Other activities having sufficient merit as determined by the MCEDA Board on a case-by-case basis.

4. Other Considerations

Compliance with all government regulations.
COVID-19 Business Assistance Loan funds will be available for as long as MCEDA determines prudent, and MCEDA reserves the right to limit the amount of funds available for this program at any time.

5. Conflict of Interest

Any Board member that may indirectly or directly gain financially from loan transactions shall immediately inform the Board of any potential conflict of interest.
If a potential conflict of interest exists, all necessary steps will be taken to ensure that the loan application is processed in full accordance with MCEDA Board policies, and local and State regulations.

6. Loan Conditions

Maximum loan amount is $5,000
Interest rate will be zero percent
Loan fee of $200 to cover cost of UCC filing, Secretary of State search, and preparation of loan documents. Fee will be due at the time of application. Fees will be returned to applicant if their loan is not approved by the EDA Board of Directors.
Loans will be for a maximum length of 24 months
Loan repayments may be deferred for up to 6 months
Repayment terms for loans will be determined on an individual basis, so long as the total principal balance is repaid within 24 months of the date of the first draw of loan funds by the borrower
Upon default of loan, or the permanent closure or sale of the business, the loan immediately becomes due and payable in full
Loans are not transferable unless the transfer is approved in writing by the MCEDA Board
Loan payment method will be automatic withdrawal ("ACH")

7. Application Requirements

Completed "COVID-19 Business Assistance Loan" application

8. Collateral

Loans will be secured with a blanket business UCC lien in the amount of the loan and to the benefit of MCEDA
Personal and/or corporate guarantees will be required for all that own 20% or more of the applicant business

I (We) have read and understand the Covid-19 Business Assistance Loan Policy:*

Yes, I'm ready to continue.

COVID-19 Business Assistance Loan Application

Applicant Information

DBA - Legal Name of the Business*

Type of Business*

Sole Proprietorship Partnership Corporation LLC

Length of Time in Business*

Years & Months

Fed Tax Id #*

MN State License*

Mailing Address*

Address Line 1

Address Line 2

City

State

ZIP Code

Is your location address different than your mailing address?*

Yes No

Location Address*

Address Line 1

Address Line 2

City

State

ZIP Code

Business Phone*

Business Fax

Email*

Web Address

Contact Name*

First Name

Last Name

Title*

Amount of Funding Requested* $

Principal #1

Name*

First Name

Last Name

DOB*

SS #*

Address*

Address Line 1

Address Line 2

City

State

ZIP Code

Percentage of Ownership*

Is there a second principal?*

Yes No

Principal #2

Name*

First Name

Last Name

DOB*

SS #*

Address*

Address Line 1

Address Line 2

City

State

ZIP Code

Percentage of Ownership*

Primary Lender

Name*

First Name

Last Name

Phone*

Fax

Ref #*

Address*

Address Line 1

Address Line 2

City

State

ZIP Code

Contact*

Title*

Business Assistance Loan Application

Applicant certifies:*

All information provided, including legal status, is true, current, and complete.

Applicant authorizes:*

MCEDA to utilize credit bureau/reporting agencies for verifying the accuracy of any information provided.

Applicant authorizes:*

The primary lending institution to provide MCEDA with a recent credit report if one has been prepared.

By typing my name below, I/We represent that the information presented on this application is complete and accurate and that all loan proceeds will be used for business working capital related purposes.

Principal #1 Name*

Principal #2 Name*

Date/Time*

LOAN PROGRAM POLICY: AUTHORIZATION FOR RELEASE OF INFORMATION

I (We) hereby supplement the Loan Application of:*

Meeker County Economic Development Authority (Lender) is authorized to make credit checks or inquiries concerning my (our) creditworthiness, credit standing, credit capacity, character, general reputation, personal characteristics, criminal background check, any matters relating to assets, liabilities, and references on said application and support information, any subsequent application and support information; or any loan servicing request or action on any loan resulting from said applications;
Creditors, including but not limited to Credit Reporting Agencies, State and National Banks, Federal Land Banks, Production Credit Associations, the Farmers Home Administration and others, are hereby authorized to disclose to Lender any information relative to any of my (our) loans, accounts, purchases, other financial transactions, production or marketing information or other pertinent information, whether past, present, or future, with said creditors;
Lender is authorized to share with credit reporting agencies and creditors doing business, or who may do business with me (us), information regarding this extension of credit, any subsequent transactions or loan servicing actions resulting from any extension of credit, and my (our) general credit history;
Photocopies of this authorization may be presented to and relied upon by my (our) creditors and others as evidence of my (our) authorization to release information to the Lender.

I (We):*

Agree to the above statements.

Applicant #1*

Applicant #2*

Date*