Small Business Emergency Assistance Program
The Round 2 application window is now closed.
Round 2 applications will be drawn at random. Those chosen will be required to submit documentation verifying eligibility and COVID-19 impact (details in the Selection and Confirmation sections below).
The City of Edina has created this program to provide short-term direct financial assistance to small businesses in Edina that have been negatively impacted by the COVID-19 pandemic.
Round 1 in April and May 2020 was administered through the Edina Housing and Redevelopment Authority. Round 2 is administered through the City using $400,000 in federal funds from the CARES Act.
The program's intent is to enable and sustain a strong local economy by:
- Reducing commercial vacancy rates
- Retaining and creating employment opportunities
- Encouraging business investment
- Ensuring residents have access to desired goods and services
Only businesses that meet ALL of the following 6 criteria will be considered:
- Physical operating location in the City of Edina
- Post office box or similar occupancy is not eligible
- Home-based businesses are not eligible
- More than 1.0 full-time employee (including the owner), but not more than 50 full-time equivalent employees in the Edina location
- Measured on Jan. 1, 2020
- Self-employed and independent contractors not eligible for this program
- Maximum annual revenue of $1,500,000 for the Edina location
- Ability to demonstrate legitimacy of business (valid Secretary of State active business listing, state certification, operating license, etc.)
- In active operation prior to Jan. 1, 2020, or with valid lease as of Jan. 1, 2020, with planned operations beginning in 2020
- All applicants must be allowed use in the applicable zoning district or be a legally non-conforming use
All types of businesses that meet the six above criteria are eligible to apply, including those that have been deemed non-essential by the State of Minnesota or that have faced mandated closures per State of Minnesota emergency orders related to the COVID-19 pandemic.
Businesses are ineligible if they meet ANY of the following conditions:
- Corporate-owned national or regional chains (locally owned franchises are eligible)
- Municipal-owned business
- Businesses owned by current City of Edina elected officials
- Not-for-profit entities, except for entities actively engaged in promoting local business at the discretion of the City of Edina
- Businesses with delinquent tax bills or other fees due to the City of Edina prior to Feb. 29, 2020
- Business in default conditions prior to Feb. 29, 2020
- Businesses that derive income from adult entertainment; passive investments; business-to-business transactions; real estate transactions; property rentals; property management or lobbying
- Businesses that have already received an Emergency Assistance Loan from the City of Edina
FORM OF ASSISTANCE
The City will provide direct grants to selected small businesses for eligible expenses incurred:
- Up to $10,000 per business
- No application or processing fees
- Grants must be issued by Nov. 15, 2020
- Eligible expenses include working capital purposes and operational expenses incurred during the COVID-19 pandemic including commercial rent or mortgage payments, payroll, cleaning and related business services, utility payments, replacement of spoiled or stale inventory, purchase and installation of personal protective equipment for staff or customers, and other direct business-related expenses incurred to maintain the viability of the business under the economic conditions related to the COVID-19 pandemic.
- Expenses NOT ELIGIBLE include any that have been reimbursed by a different loan or grant program. For example, if May rent was reimbursed by a government program, it would not be eligible. A different month's rent, not already reimbursed, would be eligible.
- All eligible expenses must have been incurred between March 17, 2020, and Oct. 31, 2020.
- Funds from this assistance program CANNOT be used for agriculture (such as crop or livestock production); capital investment such as machinery, equipment or vehicles; moving expenses or property acquisition.
- Applications from the Edina Chamber of Commerce and 50th & France Business Association will automatically be awarded a grant. These entities represent and serve dozens of local businesses. While they are allowed to forego the competitive selection process, they must each satisfy all other terms and conditions of the program.
- Following the close of the application period, each complete application will be assigned a number.
- Numbers will be selected randomly until the number of selected applicants exhausts the available funds.
- Selection anticipated for Sept. 1, 2020. It will be witnessed by at least 2 people and not involve any employees or owners of businesses that have applied.
- Numbers not selected will be retained in the event that a selected applicant is unable to be confirmed or use the full grant amount. A replacement number will then be drawn.
CONFIRMATION AND AWARD PROCESS
1. Selected businesses will be invited to submit additional information to confirm their employee count, annual revenue, financial need and their intent to continue business operations in the City of Edina. This includes:
- Documentation that year-over-year revenues or projected revenue for new businesses have declined significantly due to the COVID-19 pandemic
- Documentation of most recent IRS tax return to confirm annual revenue (2019 preferred)
- Documentation of employment as of Jan. 1, 2020, such as period reporting from a third-party payroll processor, applicant's Federal Form 941 or other state or federal payroll-related filing.
- Documentation of property ownership or valid lease at the Edina business location
2. All submitted information will be reviewed for accuracy and completeness.
3. After selection and confirmation of business status, a Grant Agreement will be prepared by the City for execution.
4. If a selected applicant is unable to confirm full eligibility under the terms of this program within 10 business days of request from staff, that application will be declared ineligible. Another application will be randomly selected as a replacement.
5. The City reserves and retains the right to cancel this program prior to the execution of grant agreements. The City also reserves the right to modify the criteria and guidelines as needed to best address the impact of the COVID-19 pandemic and the requirements of the CARES Act. The City also retains the right to deny any application for funding. Receipt of an application is no guarantee of funding.
6. Information submitted by the applicant will become a matter of public record under Minnesota Data Practices with the exception of those items protected under Minn. Stat. 13.591.
PAYMENT AND REPORTING
1. The grant will be issued upon receipt of paid invoices and receipts to confirm the business incurred and paid eligible expenses.
2. No mandatory reporting is required for this grant. Staff intends to follow up with each business in Fall 2021 to get a status update, but that follow-up is optional and not a requirement of the grant agreement.