Local businesses receive $303,500 in emergency loans
Nine businesses in Hubbard County were among the 1,020 throughout the state to receive a small business emergency loan from the Minnesota Department of Employment and Economic Development (DEED).
The following local operations were selected for loans:
Clancy's on Island Lake Inc., $35,000
FireFly Event Barn L.L.C., $10,500
Foxy's Bar & Grill, Inc., $35,000
Nevis Muskies Inc., $35,000
Northland Subs Inc., $25,000
Park Avenue Salon, Inc., $35,000
Phoenix Restaurant Group Inc., $35,000
Sassy & Company Salon, LLC, $20,000
Sandra Hasbargen, $3,000
Vallarta Mexican Grill Inc., $35,000
According to a DEED news release, more than $27 million in loans were made from $30 million in special revenue funds allocated to the emergency loan program. The remaining $2.8 million was distributed to lenders to assist with loan administration and technical assistance expenses.
“Small Business Emergency Loans helped hundreds of businesses across Minnesota survive the initial impacts of the COVID-19 pandemic,” said DEED Commissioner Steve Grove. “DEED launched this program in record time to get emergency financial assistance out to businesses as quickly as possible. We could not have done this without the hard work and collaboration of our 22 lending partners throughout the state.”
Loans were made by DEED's lender network for amounts between $2,500 and $35,000 to qualifying small businesses whose owners who lacked adequate cash flow to withstand temporary closure.
The 0 percent interest loans are up to 50 percent forgivable if the business maintains operations at substantially the same level as before the pandemic. Because these loans are considered bridge financing, if other financing becomes available to small businesses that received a Minnesota Small Business Emergency Loan, such as federal funding, the emergency loan must be repaid.
The emergency loans went to help businesses temporarily closed under executive orders which stopped onsite customer dining at restaurants and bars and closed salons, tattoo parlors and other personal care businesses.
Businesses in the seven-county metro received $13.2 million in loans, while businesses in Greater Minnesota received $14.0 million. A list of recepients is on DEED’s website at https://mn.gov/deed/business/financing-business/deed-programs/elp/sbel-awards.jsp.