SBA Economic Injury
Disaster Loan Program (COVID-19)

MN Small Businesses: COVID-19

PPP Updates

February 26, 2021

SBA PPP Loan Forgiveness Application- 21st Century Bank Customers

The SBA now has three new versions of the PPP Forgiveness forms that reflect the changes implemented by the Economic Aid Act that was signed into law on December 27, 2020.  The different versions of these forgiveness forms are detailed and linked below.

The biggest change of note is that the new 3508S Forgiveness Form now applies to any loan of $150,000 or less.  This should simplify the forgiveness process for many.  Please read through this email carefully to see how these form changes affect your PPP Forgiveness Application.  It should be noted, that these form changes only apply to those that have not filed for loan forgiveness as of this date.  You do not need to reapply for forgiveness if you have already submitted your application to us. 


PPP Success Stories

SBA Economic Injury Disaster Loan (EIDL)

What you need to know

  • This program can provide low-interest loans of up to $2 million to small 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 buisnesses. The non-profit rate is 2.75%.
  • These loans have long-term repayment options, up to a maximum of 30 years
  • Disaster laon payments are deferred for 11 months

How to apply

Here’s a list of documents you’ll need to provide to complete this application:

Note: The SBA HIGHLY recommends you complete your application online, do not mail them in. However preparing these documents before you go to will streamline the process for you. 

Still need help? Call the SBA’s Disaster Customer Service Center at 800.659.2955 or email Individuals who are deaf or hard-of-hearing can call 800.877.8339.

SBA Economic Injury Disaster Loan Advance

In response to the Coronavirus (COVID-19) pandemic, small business owners in all U.S. states, Washington D.C., and territories are eligible to apply for an Economic Injury Disaster Loan advance of up to $10,000. 

The SBA Economic Injury Disaster Loan program provides small businesses with working capital loans of up to $2 million that can provide vital economic support to small businesses to help overcome the temporary loss of revenue they are experiencing. The loan advance will provide economic relief to businesses that are currently experiencing a temporary loss of revenue. Funds will be made available within three days of a successful application, and this loan advance will not have to be repaid.


Aimed to provide much-needed relief to millions of small businesses so they can sustain their businesses and keep the employees employed. “This legislation provides small business job retention loans to provide eight weeks of pay-roll and certain overhead to keep workers employed,” said Secretary Mnuchin. “Treasury and the Small Business Administration expect to have this program up and running by April 3rd so that businesses can go to a participating SBA 7(a) lender, bank, or credit union, apply for a loan, and be approved on the same day. The loans will be forgiv-en as long as the funds are used to keep employees on the payroll and for certain other expenses.”
The new loan program will help small businesses with their payroll and other business operating expenses. It will provide critical capital to businesses without collateral requirements, personal guarantees, or SBA fees – all with a 100% guarantee from SBA. All loan payments will be deferred for six months. Most importantly, the SBA will forgive the portion of the loan proceeds that are used to cover the first eight weeks of payroll costs, rent, utilities, and mortgage interest.

Paycheck Protection Program

Visit for more information on the Paycheck Protection Program.

The new loan program will be available retroactive from Feb. 15, 2020, so employers can rehire their recently laid-off employees through June 30, 2020.

Loan Terms & Conditions

  • Eligible businesses: All businesses, including non-profits, Veterans organizations, Tribal concerns, sole proprietorships, self-employed individuals, and independent contractors, with 500 or fewer employees, or no greater than the number of employees set by the SBA as the size standard for certain industries
  • Maximum loan amount up to $10 million
  • Loan forgiveness if proceeds used for payroll costs and other designated business operating expenses in the 8 weeks following the date of loan origination (due to likely high subscription, it is anticipated that not more than 25% of the forgiven amount may be for non-payroll costs)
  • All loans under this program will have the following identical features:
    • Interest rate of 0.5%
    • Maturity of 2 years
    • First payment deferred for six months
    • 100% guarantee by SBA
    • No collateral
    • No personal guarantees
    • No borrow or lender fees payable to SBA

Additional Loan Programs & Benefits

The SBA Debt Relief program will provide a reprieve to small businesses as they overcome the challenges created by this health crisis. Under this program:

  • The SBA will also pay the principal and interest of new 7(a) loans issued prior to September 27, 2020.
  •  The SBA will pay the principal and interest of current 7(a) loans for a period of six months.

Express Bridge Loan Pilot Program allows small businesses who currently have a business relationship with an SBA Express Lender to access up to $25,000 with less paperwork. These loans can provide vital economic support to small businesses to help overcome the temporary loss of revenue they are experiencing and can be a term loans or used to bridge the gap while applying for a direct SBA Economic Injury Disaster loan. If a small business has an urgent need for cash while waiting for decision and disbursement on Economic Injury Disaster Loan, they may qualify for an SBA Express Disaster Bridge Loan.



  • Up to $25,000
  • Fast turnaround
  • Will be repaid in full or in part by proceeds from the EIDL loan

SBA is here to assist small businesses with accessing federal resources and navigating their own preparedness plans as described by the CDC’s Guidance for Businesses and Employers.


SBA works with a number of local partners to counsel, mentor and train small businesses. The SBA has 68 District Offices, as well as support provided by its Resource Partners, such as SCORE offices, Women’s Business Centers, Small Business Development Centers and Veterans Business Outreach Centers. When faced with a business need, use the SBA’s Local Assistance Directoryto locate the office nearest you.

SBA provides a number of loan resources for small businesses to utilize when operating their business. To find more information on loans or how to connect with a lender, visit:

  • 7(a) program offers loan amounts up to $5,000,000 and is an all-inclusive loan program deployed by lending partners for eligible small businesses within the U.S. States and its territories. The uses of proceeds include: working capital; expansion/renovation; new construction; purchase of land or buildings; purchase of equipment, fixtures; lease-hold improvements; refinancing debt for compelling reasons; seasonal line of credit; inventory; or starting a business.
  • Express loan program provides loans up to $350,000 for no more than 7 years with an option to revolve. There is a turnaround time of 36 hours for approval or denial of a completed application. The uses of proceeds are the same as the standard 7(a) loan.
  • Community Advantage loan pilot program allows mission-based lenders to assist small businesses in underserved markets with a maximum loan size of $250,000. The uses of proceeds are the same as the standard 7(a) loan.
  • 504 loan program is designed to foster economic development and job creation and/or retention. The eligible use of proceeds is limited to the acquisition or eligible refinance of fixed assets.
  • Microloan program involves making loans through nonprofit lending organizations to underserved markets. Authorized use of loan proceeds includes working capital, supplies, machinery & equipment, and fixtures (does not include real estate). The maximum loan amount is $50,000 with the average loan size of $14,000

SBA Loan Timing and Other Considerations

The SBA is currently estimating that once they receive the full application, turnaround time for approval will be 21 days (this could increase with significant application volume).

Once loan approval has been granted, the SBA’s legal department will prepare loan documents and send them to the borrower. The borrower will sign/date and mail them back to the SBA, once they have been processed the SBA will wire loan proceeds directly into the borrowing entity’s checking account.

Application and funding for SBA EIDL loans will not go through the bank (as 504 and/or 7a loans do).  The
application and funding will be done directly with the SBA.

SBA is not a collateral based lender, but is a cash flow lender.  The SBA is looking for a clearly defined source of repayment versus having a loan that is fully secured.  The SBA will not decline a loan application solely based on a shortfall of collateral.

COVID-19 Small Business News

In line with the state’s continued response to COVID-19, the Minnesota Department of Revenue is granting a 30-day Sales and Use Tax grace period for businesses identified in Executive Order 20-04. During this time, the department will not assess penalties or interest. 

Identified businesses with a monthly Sales and Use Tax payment due March 20, 2020, have until April 20 to make that payment. These businesses should still file their return by March 20. At this time, this grace period for penalty and interest is only for monthly filers and only for the March 20 payment. Businesses can request additional relief from penalty and interest for reasonable cause after April 20. 

The Treasury Department and the IRS are extending the due date for Federal income tax payments due April 15, 2020, to July 15, 2020, for payments due of up to $10 million for corporations and up to $1 million for individuals – regardless of filing status – and other unincorporated entities. Associated interest, additions to tax, and penalties for late payment will also be suspended until July 15, 2020. More info is available on the US Department of the Treasury website.

What is not extended:

  • This does not apply to partnership and S-corporation returns that were due on March 16, 2020. Those needed to be filed or extended.
  • Form 941 (employment tax) is still due on April 30, 2020
  • W-2’s, 1099’s, 1095’s, etc: “No extension is provided in this notice for the filing of any Federal Information Return.”
  • Each state is making their own decision. The IRS urges taxpayers to check with their state tax agencies for those details.
  • Payment deadline extended to July 15, 2020 with no limitation on amount.

Which payments?

  • Form 1040 for 2019 balance due payments normally due on April 15, 2020 are now due on July 15, 2020.
  • Form 1040 estimated tax payments for 2020 normally due on April 15, 2020 are now due on July 15, 2020.

This deferment applies to all taxpayers, including individuals, trusts and estates, corporations, and other non-corporate tax filers as well as those who pay self-employment tax.

What is not extended:

  • Form 1040 estimated tax payment due on June 15, 2020. Those payments are still due on June 15, 2020.
  • No extension is provided in this notice for the payment or deposit of any other type of Federal tax.

More information can be found in the News Release and Notice 2020-18

Thanks to the collaborative partnership between the State of Minnesota and the SBA to address the challenging economic impact of Coronavirus, Minnesota small businesses are eligible for the SBA Economic Injury Disaster Loan Program and can apply online

SBA.GOV   Or SBA Minnesota

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