Small Business Emergency Assistance Program

The application window for this program closed at 4:30 p.m. April 27, 2020. Submitted applications are being reviewed.

The City of Edina has created a temporary program to provide emergency financial assistance to small businesses in Edina who are adversely impacted by the COVID-19 pandemic.

ELIGIBLE BUSINESSES

Only businesses that meet ALL of the following six criteria will be considered:

  1. At least 2 and no more than 25 full-time equivalent (FTE) employees
       a.)  A 40-hour/week employee counts as 1 FTE. A 10-hour/week employee counts as 0.25 FTE, etc.
  2. Annual gross revenue in 2019 of $1,000,000 or less
  3. 2020 revenues in decline due to COVID-19
  4. Located in a commercial or industrial zoning district in the City of Edina
  5. Physical “brick and mortar” business
  6. Reliant on in-person, face-to-face customer transactions for at least 70% of revenue

Businesses are ineligible if they meet ANY of the following conditions:

  • New business not in operation in Edina prior to July 31, 2019
  • Corporate or multi-state chains
  • Businesses delinquent in payment of lease, loans, tax liabilities or other expenses prior to Feb. 29, 2020
  • Businesses with owner’s delinquent in any tax payment for any Minnesota business prior to Feb. 29, 2020
  • Government owned or operated enterprises
  • Businesses owned or operated by elected City officials
  • Not-for-profit enterprises

FORM OF ASSISTANCE

The City will provide interest-free forgivable loans to cover up to 2 months of essential operating expenses, not to exceed $10,000. Payments (if any) will be deferred for 24 months. Only one Edina loan will be considered for each business. Only one application will be accepted for people that own multiple eligible businesses.

The loans will be completely forgiven if the business satisfies all of these conditions:

  • Provide complete and accurate information
  • Submit interim status reports at 60 days and 1 year after loan agreement is signed
  • Submit final status report at 2 years
  • Remain in operation at the Edina location 2 years from the date of loan
  • Retain at least 75% of the FTE employment count in 2 years

Although unlikely, repayment will be required if any of these conditions exist:

  • Incorrect or false information is provided in the application
  • Business closes within 2 years
  • Business relocates outside of Edina within 2 years
  • Business fails to retain 75% of the FTE jobs at the 2-year anniversary of the loan
  • Owner sells the business to an unrelated party for a profit during the term of the loan

Application to other emergency financial programs (SBA, DEED, landlord, etc.) is encouraged and will not count against consideration for an Edina forgivable loan.

DOCUMENTATION REQUIRED

In order to be considered, the application must be filled out completely, accurately and submitted by the deadline. Late and incomplete applications will NOT be considered.

The application is designed to be reasonably simple and straightforward. For full consideration, you are required to include the following information along with your completed application:

  • MN Secretary of State business registration
  • Federal Business EIN and Minnesota Tax ID
  • Copy of Edina business lease or proof of business property ownership
  • Confirmation of 2019 business revenue, examples include: federal tax return, profit and loss statements (certified by MN CPA), point-of-sales year-end report, other sales reports, quarterly sales tax filings or bank statement
  • Year-over-year business declines for January, February, March and April
  • Average monthly operating costs
  • Intended use of funds
  • Other financial relief sought
  • IRS W-9 form