The City of Rochester / Rochester Area Economic Development, Inc. (RAEDI) COVID-19 Emergency Economic Development loans will be used to provide assistance to small local businesses directly during the COVID-19 pandemic event. It is intended to be an interim financial aid to help keep businesses operating and a part of the tax base once the pandemic is over, and be able to support their employees in times of declining or no business. If applicants meet the State of Minnesota Department of Employment & Economic Development’s Shared Work Program requirements, they also must have applied to that program as a prerequisite to filing the City’s emergency loan application.
Loan Program Requirements and Terms
- Qualifying business must be located within City of Rochester municipal limits and must not have more than 25 full time equivalent (FTE) employees.
- The maximum loan amount not to exceed $25,000.
- Loan will be amortized over a period of 36 months on a monthly payment basis, with the payments starting 90 days after the state of emergency declaration is terminated.
- Interest rate of 1%, accruing from the date of state of emergency ending. If loan is repaid within six (6) months of the state of emergency ending, then no interest to be paid.
- Loans may be repaid in whole or in part anytime without penalty.
- Applying for this loan will NOT disqualify you for additional funds from the SBA Emergency Loan Program, any of the State of Minnesota Department of Employment & Economic Development assistance programs or any other local assistance programs that may be available.
Loan Program Applicant Information
Applicants for COVID-19 Emergency Economic Development Loan funds must fill out and submit the online application form no later than April 3, 2020. As stated above, any loan applicant that meets the requirements of the Shared Work Program must also submit evidence of filing for relief through that program.
STEP 1: DOWNLOAD THIS PDF.
STEP 2: Fill out all the required information and sign the document. Email the completed application and attachments to RochesterELP@rochestermn.gov. At this time, only emailed requests are being accepted.
STEP 3: The application period closes at 5:00 PM on Friday, April 3, 2020. You will be notified of your approval / denial within five (5) days after application closes.
Frequently Asked Questions (FAQ)
Will receiving this loan disqualify me from receiving funds from the Small Business Administration (SBA) emergency loan program?
No. Applying for this loan will NOT disqualify you for additional funds from the SBA emergency loan program or any other State or local assistance programs.
What is the maximum amount I can receive?
The maximum amount is $25,000. There is no set minimum.
What is the interest rate?
When will payments start?
Repayment will be deferred for 90 days following the expiration of the Emergency declaration ending.
I have more than 25 (FTE) employees. Am I eligible?
Currently, the program is restricted to 25 or fewer (FTE) employees. If we make changes we will keep the business community updated.
What can I use the loan for?
The loan can only be used for offsetting payroll expenses and working capital to help keep the business in operation.
The maximum amount does not cover my needs. What should I do?
We recommend that businesses apply for Minnesota's Small Business Emergency Loan Program, created specifically for businesses ordered to close by the Governor. Businesses can also apply for Small Business Administration loan programs.
Do you have questions or need help with your application? Please email us at RochesterELP@rochestermn.gov.