Alternative Funding Programs

Maximum loan amount	$5 million
Maximum SBA guarantee %	85% for loans up to $150,000 and 75% for loans greater than $150,000
Interest rate	Lenders and borrowers can negotiate the interest rate, but it may not exceed the SBA maximum
Eligibility decision	By the SBA. Qualified lenders may be granted delegated authority (PLP) to make eligibility determinations without SBA review.
Revolving lines of credit	Up to 10 years (Permitted only under CAPLines submission. See below)
SBA turnaround time	5-10 business days
Forms	SBA Form 1919 and SBA Form 1920 are required for every loan (other SBA Forms may be required)
Collateral	Lenders are not required to take collateral for loans up to $25,000. For loans in excess of $350,000, the SBA requires that the lender collateralize the loan to the maximum extent possible up to the loan amount. If business fixed assets do not “fully secure” the loan the lender may include trading assets (using 10% of current book value for the calculation), and must take available equity in the personal real estate (residential and investment) of the principals as collateral.
Credit decision	By the SBA. Qualified lenders may be granted delegated authority (PLP) to make credit decisions without SBA review.

Maximum loan amount	$350,000
Maximum SBA guarantee %	85% for loans up to $150,000 and 75% for loans greater than $150,000
Interest rate	Lenders and borrowers can negotiate the interest rate, but it may not exceed the SBA maximum
Eligibility decision	By the SBA. Qualified lenders may be granted delegated authority (PLP) to make eligibility determinations without SBA review.
SBA turnaround time	5-10 business days
Forms	SBA Form 1919 and SBA Form 1920 are required for every loan (other SBA Forms may be required)
Collateral	Lenders are not required to take collateral for loans up to $25,000. For loans over $25,000, up to and including $350,000, the lender must follow the collateral policies and procedures that it has established and implemented for its similarly-sized non-SBA-guaranteed commercial loans, but at a minimum the lender must take a first lien on assets financed with loan proceeds and lender must take a lien on all of the applicant’s fixed assets including real estate. Lender is not required to take a lien against applicant’s real estate when the equity is less than 25% of the fair market value. The lender may limit the lien taken against real estate to the loan amount.
Credit decision	By the SBA. Qualified lenders may be granted delegated authority (PLP) to make credit decisions without SBA review.

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 quickly. 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 an Economic Injury Disaster Loan, they may qualify for an SBA Express Disaster Bridge Loan. Terms Up to $25,000 Fast turnaround Will be repaid in full or in part by proceeds from the EIDL loan

An Express Loan is part of the Small Business Administration (SBA) ‘s 7(a) loan program. The SBA Express Loan is one of the options under the 7(a) program, which offers an expedited approval time of just 36 hours. The loan details include:

The SBA Express program features an accelerated turnaround time for SBA review. The SBA will respond to your application within 36 hours.

Maximum loan amount	$350,000
Maximum SBA guarantee %	50%
Interest rate	Lenders and borrowers can negotiate the interest rate, but it may not exceed the SBA maximum
Eligibility decision	Made by the lender
Revolving lines of credit	Up to seven years with maturity extensions permitted at the outset
SBA turnaround time	Within 36 hours
Forms	Lender primarily uses own forms and procedures, plus SBA Form 1919
Collateral	Lenders are not required to take collateral for loans up to $25,000. May use their existing collateral policy for loans over $25,000 up to $350,000.
Credit decision	Made by the lender
Purchase	Lender may request expedited SBA purchase on small loans or in situations where liquidation may be delayed

Especially for businesses that have tried and failed to receive funding elsewhere, the SBA Express Loan could be an option to consider. 

July 6, 2020 — The Otto Bremer Trust (OBT), one of the nation’s largest charitable organizations, announced a second phase of its $50 million emergency fund.

Managed by its Community Benefit Financial Company (CBFC) subsidiary, the emergency fund has already distributed first-phase grants and loans of over $10.5 million to more than 300 organizations in Minnesota, Montana, North Dakota, and Wisconsin.

“OBT has interactions with a broad range of nonprofit organizations in the four-state area. The pandemic has clearly had an immense impact on the sector since mid-March, and we took early action to serve as a stabilizing force. OBT’s 75-year history of working with communities to meet ever-changing challenges positioned us to act quickly,” said Daniel Reardon, Co-CEO and Trustee, OBT. “While we took action to meet some immediate needs, we are aware that some short-term issues remain, and we will continue to provide emergency funding to address them. We also know that it is time to begin rebuilding our communities by addressing desperate shortages in capital for small businesses and other critical services.”

The second phase will expand the emergency fund by assembling a network of intermediaries, including community development financial institutions (CDFIs) and community development corporations (CDCs) in OBT’s four-state region in order to efficiently deploy capital to a variety of nonprofits and small for-profit businesses. The network will include both longtime partners as well as new additions. A rigorous selection process is already underway, and the network will expand over the coming months to reach all corners of the region.

“Time is of the essence for communities to reestablish fundamental economic and service activity. Short-term financial infusions will only go so far,” said Charlotte Johnson, Co-CEO and Trustee, OBT. “If we are going to address plaguing issues of racial bias and discrimination to vulnerable segments of society, we need to invest for the long-term, not just stabilize organizations. We know that real change takes time and is a long-term investment; we are here for the long haul.”

Information about the expansion of OBT’s emergency funding will be posted to OBT’s website, ottobremer.org, as well as shared directly to community organizations.

Submit Your Initial Inquiry here

Qualifications

While all nonprofit organizations in Minnesota, Wisconsin, North Dakota, and Montana are welcome to apply for emergency funding, under IRS regulations, the use of funding must advance the charitable objectives of the Otto Bremer Trust. An application does not guarantee funding; applications will be evaluated on a case-by-case basis.

The CBFC Emergency Fund is designated for emergency requests only and is separate from OBT’s normal grantmaking process. Non-emergency requests should go through the regular application process. Having an existing grant or a grant application in process will not impact your eligibility to apply to the fund. If you have questions about an existing grant, please contact your program officer.

Apply for grants up to $50,000 to support business growth, including $10,000 emergency COVID-19 Business for All Grants to help small businesses in crisis. Join leaders such as Gwyneth Paltrow, Kristen Bell, Lisa Price, Armando Christian “Pitbull” Perez, and Jeff Hoffman to empower every American with an entrepreneurial spirit. Read more and apply here.

 

the Minnesota Legislature authorized the use of the Rural Finance Authority’s (RFA) Disaster Recovery Loan Program funds to address the following additional needs during a Peacetime Emergency Declaration. You can apply for funds if your farm operation:

• Experienced a loss of revenue due to human disease (such as COVID-19)
• Experienced a loss of revenue due to highly contagious animal diseases affecting your livestock or poultry flocks.

This loan is available to help you cover lost revenue or expenses not covered by insurance. The funds can be used to help clean up, repair, or replace farm buildings, repair or replace septic and water systems, replace seed, fertilizer (or other cropping inputs), feed, or livestock and poultry.

Loan Eligibility Requirements

• You must be a Minnesota resident or a domestic family farm corporation or family farm partnership as defined in section 500.24, subd. 2;
• You must certify that the damage or loss was sustained within a county that was the subject of a state or federal disaster declaration, or due to the presence of a highly contagious animal disease, or due to an emergency determined by the RFA;
• You must certify that the farm operations experienced a quantifiable loss of revenue due to human disease resulting in a declaration of a peacetime emergency in the state;
• You must demonstrate an ability to repay the loan;
• At least 50 percent of average annual gross income must have been received from farming for the past three years.

Loan Terms

The RFA participation in a qualifying loan is limited to 45 percent of the principal amount up to a maximum of $200,000. Interest rate on the RFA portion of the loan must not exceed 4.0 percent, and is currently set at 0.0 percent. Down payment and collateral requirements will be determined by the agricultural lender and the authority. Loan amortization will be scheduled on flexible terms not to exceed 10 years. Loan payments of interest only are permitted for the first two years. There is no maximum on the size of loan that a participating lender may make under the program.

The originating lender will retain the balance of each loan. The borrower must satisfy the local lender’s guidelines. The local lender will control the day-to- day operation of the loan. Participating lenders are allowed to charge a fixed or adjustable interest rate consistent with their normal lending practices and their agreement with the RFA. You can read all of the information here on the Minnesota Department of Agriculture website, or contact our experts for assistance throughout the MDA loan application process.

OVERVIEW

EDA CARES Act Recovery Assistance, which is being administered under the authority of the bureau’s flexible Economic Adjustment Assistance (EAA) (PDF) program, provides a wide-range of financial assistance to communities and regions as they respond to and recover from the impacts of the pandemic.

On May 7, 2020, Secretary Wilbur Ross made EDA’s CARES Act Recovery Assistance funding available with the announcement that EDA had published an Addendum to its FY 2020 Public Works and Economic Adjustment Assistance Notice of Funding Opportunity. EDA intends to deploy its CARES Act funding as quickly, effectively, and efficiently as possible, and in a manner that meets communities needs.

ELIGIBILITY

EDA has determined that economic injury from the coronavirus pandemic constitutes a “Special Need” under the EAA program and eligibility may be established on that basis without reference to other economic distress criteria. Nonetheless, applicants for EDA CARES Act Recovery Assistance are still required to explain clearly in their application how their project would “prevent, prepare for, and respond to coronavirus” or respond to “economic injury as a result of coronavirus.”

It should be noted that individuals and for-profit entities are not eligible for EDA CARES Act funding. EDA can only make grants to state and local governmental entities, institutions of higher education, not for-profit entities, and federally recognized Tribes. Please see the FY 2020 EDA Public Works and Economic Adjustment Assistance Programs (PWEAA) Notice of Funding Opportunity (NOFO) for more information on eligible applicants. Businesses, however, may be eligible for various types of assistance from EDA recipients, including loans from an EDA-funded Revolving Loan Fund (RLF) and technical assistance from University Centers and other recipients. Please click here for EDA’s RLF FAQ.

Only state and local governmental entities, institutions of higher education, not for-profit entities, and federally recognized Tribes. Small business owners should visit www.coronavirus.gov/smallbusiness for details on small business assistance programs including SBA’s Paycheck Protection Program.

 

Grantmaking is a key role of community foundations like Southwest Initiative Foundation.

Most grants are awarded through more than 120 fund partners, which have their own grant application guidelines. If you have a fund in your area, it may be a resource for you.

Southwest Initiative Foundation can award grants to nonprofit organizations, schools, government agencies and projects that use one of these entities as a fiscal partner. Grants are not awarded to individuals or to start a business. Instead, entrepreneurs can talk to the Southwest Initiative Foundation loan team. If the business plan seems like it could be a fit for Southwest Initiative Foundation, their loan team will help you apply for financing.

Fill out the grant pre-application questionnaire

Southwest Initiative Foundation is accepting grant applications to support nonprofit organizations addressing basic needs in southwest Minnesota. The intent is to help organizations working directly with people who need more and different support during the COVID-19 crisis. SWIF is leveraging dollars from the Minnesota Disaster Recovery Fund to support this grant round.

Focus areas include:

• Food security
• Mental health
• Domestic violence and homelessness.
• This grant will also support continuity of business for organizations serving children living in poverty, elder residents, farmers, native communities, new immigrants, people of color and refugees.

Applicants must demonstrate a benefit within one or more of the following 18 counties in southwest Minnesota: Big Stone, Chippewa, Cottonwood, Jackson, Kandiyohi, Lac qui Parle, Lincoln, Lyon, McLeod, Meeker, Murray, Nobles, Pipestone, Redwood, Renville, Rock, Swift and Yellow Medicine; or the Upper Sioux Community or Lower Sioux Indian Community.

Grants from $500 to $5,000 will be awarded as funding is available. This will be an open grant process through July 1, 2020. Grant requests received by the 1st and the 15th of the month will be reviewed within the two weeks following submission on an ongoing basis.

Apply here

The Local Initiatives Support Corporation, known as LISC has presented another funding opportunity to aid in the financial relief for business owners.

Who is eligible?

LISC will support small businesses and enterprises affected the Covid-19 across the country, especially those in under-served communities, including entrepreneurs of color, women- and veteran-owned businesses that often lack access to flexible, affordable capital.

Applications will be reviewed based on criteria designed to prioritize particularly challenged businesses, and the final grantees will be randomly selected from the top scoring applicants.

If you are a nonprofit organization, LISC has compiled a guide of resources available nationally and locally.

The next application window opens on 5/14. Click here to subscribe to updates by LISC.

The Main Street Lending Program was established in an effort to support lending and provide another alternative for small and medium-sized businesses that are dealing with the effects of COVID-19. The Program will operate through three facilities: the Main Street New Loan Facility (MSNLF), the Main Street Priority Loan Facility (MSPLF), and the Main Street Expanded Loan Facility (MSELF).

The Department of the Treasury (Treasury Department) will make a $75 billion equity investment in a Special Purpose Vehicle (Main Street SPV) in connection with the Program. The funds invested by the Treasury Department were appropriated to the Exchange Stabilization Fund under section 4027 of the Coronavirus Aid, Relief, and Economic Security Act (CARES Act).

You can read more about this program here.

The AGRI Rapid Response Mini-Grant for Livestock Processing helps processors and certain producers respond to market issues causes by COVID-19. The program aims to increase slaughter, processing, and storage capacity for livestock products until existing markets return or new markets are developed.

Eligible Applicants

Minnesota meat, poultry, egg, and milk processors and Minnesota livestock producers in operation before March 1, 2020 may apply.

Meat processors must be one of the following:

• USDA inspected slaughter and/or processing plant that is adding capacity
• Minnesota Equal-To slaughter and/or processing plant that is adding capacity
• Licensed custom exempt slaughter plant that is adding Equal-To slaughter
• Licensed custom exempt slaughter plant that is adding capacity

 In addition, all applicants must:

• Be in good standing with the State of Minnesota, including:
  • No back taxes owed
  • No defaults on Minnesota State-backed financing for the last 7 years
  • Acceptable performance on past MDA grants
  • Compliant with current state regulations
• Currently reside in Minnesota or be authorized to conduct business in Minnesota
• Not be an employee or the spouse of an employee of the MDA

 Eligible Expenses

Expenses must make immediate impact on the State’s capacity to process or store Minnesota-raised livestock, poultry, milk, and eggs. Only expenses incurred after April 20, 2020, are eligible for reimbursement.

Project examples include:

• Cooler walls and refrigeration units
• Contractor costs and materials for installation of approved equipment, including plumbing, drainage, venting, and electrical work
• Temporary cold storage including rented commercial space or refrigerated trucks
• Portion cutters
• Slaughter equipment such as cradles, saws, hooks, scalders, or sinks
• Equipment or facilities to accommodate holding of larger number of animals in a humane manner (fences, gates, chutes)

 Ineligible Expenses

General operating expenses (such as salary, fringe, and supplies) are not eligible.

 Matching Funds

This mini-grant requires a 1:1 match. Matching funds can be in the form of cash, loans, other grants, or liquid capital assets dedicated to the project. However, other state funds, such as an AGRI Value-Added Grant, cannot be used for the matching funds. State funds are obtained through the budgeting process of the Minnesota Legislature or granted by a State agency.

 Amount Available

• We expect to award approximately $250,000. The maximum award is $5,000 and the minimum award is $1,000.

 Applying

• We will accept applications until June 15, 2020, or until all funds are gone, whichever is first.
• Apply through our online application system. When you submit your application, we encourage you to email a completed IRS Form W-9
• to Courtney VanderMey at the same time.

A $525 million commitment to provide funding and lending to small businesses during this time of stress.

• $500 million to provide emergency loans to small businesses across the country deployed by Community Development Financial Institutions (CDFIs), Minority Depository Institutions (MDIs), and other mission-driven lenders
• $25 million in grants to Community Development Financial Institutions (CDFIs) and other mission-driven lenders to ensure they have the necessary capacity to underwrite and deliver loans to small businesses as soon as possible

Read more here.

A $25 million commitment through Goldman Sachs Gives to support healthcare organizations, frontline responders, and the hardest-hit communities. To further encourage giving toward relief efforts, we’ve also established a special matching gift program for our people, up to a total of $5 million.

Read more here.

From Salesforce:

As part of Salesforce’s commitment to small businesses and giving back to the community, Salesforce is partnering with Ureeka to offer eligible small businesses the opportunity to receive a $10,000 grant to help them through the COVID-19 outbreak. Navigate below to see if you are eligible and how to continue with an application.

From Zapier:

Who qualifies for this assistance program?

COVID-19 is creating challenges for all of us. Small businesses are being hit especially hard. With this assistance program, we want to lend what help we can to our most impacted customers.

We’re offering our small business assistance program to heavily impacted people who meet some combination of these criteria:

• You work in a business with 10 employees or fewer, or you’re a solo entrepreneur.
• Your business is privately owned.
• Your business is impacted by “social distancing” in an outsized way. The tourism, food service, hospitality, salon and spa, fitness, and education industries are some examples.
• You’re a paying Zapier customer as of 3/20/2020.

This list is non-exhaustive. If you have questions, reach out, and we’ll do what we can to help. We’re running mostly on the honor system here. If you still have the means to pay for a Zapier plan, please do so. Zapier’s 300+ employees and our families are dealing with the impact of COVID-19, too. But we know many of you are struggling more than we are; we’d like to help you weather the storm.

How can I apply for the assistance program?

If you and your business fall into one of the groups above and you want to apply for assistance, take these steps:

• Fill out this form to tell us a bit more about your business. Our support team will review every request.
• Wait for a response. Our support team will reach out directly to let you know if you’re approved for the program. Dedicated teammates are watching for responses, and we’ll review them as fast as we can.
• We’ll apply a coupon to your account if you’re approved. The coupon covers 3 months of a paid Zapier Starter plan.

Please note: The credit does not cover metered tasks beyond the base plan.

ASSISTANCE FOR IOWA SMALL BUSINESSES & NONPROFITS Governor Reynolds has allocated federal CARES Act funds to assist small businesses and nonprofits economically impacted by COVID-19. The Iowa Economic Development Authority’s Small Business Utility Disruption Prevention Program will provide short-term relief to eligible small businesses and nonprofits that face significant hardship in the payment of utility bills for service provided during the months of disruption to their business.

ELIGIBILITY

• Iowa-based for profit and nonprofit businesses with 50 or fewer employees
  • Must have a physical location (non-residential) in Iowa
  • Must be registered with the Iowa Secretary of State to do business in the State of Iowa (or with the County Recorder for sole proprietors)
• Must not be an ineligible business type:
  • Adult Entertainment; Construction, Internet Sales, without corresponding storefront; Medical; Private Clubs, Professional Services; Professional Sports; Religious Institutions, with the exception of those offering social services including daycare, food bank, preschool, shelter, etc.
• Have not received funds provided by the State of Iowa’s Small Business Relief Grant (SBRG) funding
• Have not received any funds provided by the State of Iowa’s Nonprofit Recovery Fund
• Must have experienced a COVID-19 loss of revenue on or after March 17, 2020, that resulted in unpaid bills for electric or natural gas utility service provided between March 17, 2020, and June 30, 2020
• Applicants’ average monthly electric usage must not exceed 25,000 kWh for electricity or 2,500 therms for natural gas (review with your utility bill and/or contact your utility provider to confirm)
• Businesses must be open

Read more and apply here.

Vermont’s CDBG Sole Proprietor stabilization grant program is designed to assist sole proprietors with no employees that have been impacted by COVID-19 and have remaining unmet needs that can be documented.   Businesses will be required to provide a duplication of benefit affidavit to document unmet need.

This program will provide grants of $5,000, $7,500 or $10,000 to qualifying sole proprietors through a Lottery draw.  Funds may only be used for working capital to cover business costs, such as rent, utilities, and for retrofitting to meet COVID-19 requirements to re-open and remain open. This is not a first-come, first-serve program.

Read more and apply here.

The purpose of the Small Business Grant Program under section 601(a) of the Social Security Act, as added by section 5001 of the Coronavirus Aid, Relief, and Economic Security Act (“CARES Act”) and Section 7.031 in House Bill 2007 (2020) is to provide grants to small businesses and family-owned farms for reimbursement of costs of business interruption caused by required closures in connection with the COVID-19 public health emergency.

The Department is focused on impacting the hardest hit industries, which include retail trade, accommodation and food service and health care, in addition to family-owned farms. Other industries may apply September 1, 2020 if there are funds available.

Small Business Grant Program FAQs

Read more and apply here.