Emergency loans of up to $25K being made available to Rochester small businesses
The City of Rochester has released additional information on how small businesses can apply for emergency economic development loans.
The loans — which will be administered by Rochester Area Economic Development, Inc. — are intended to provide short-term financial aid for businesses experiencing declining or no business as a result of the COVID-19 pandemic. The city council has authorized up to $250,000 in support.
To apply for the RAEDI emergency loans, businesses must be located within city limits and not have more than 25 full time employees. Businesses must have also already applied to the State of Minnesota’s Department of Employment & Economic Development Shared Work Program.
According to the city, each business can apply for a loan up to $25,000. Repayment will start 90 days after the state of emergency declaration is terminated. There will be a 1 percent interest rate on each loan; though if the loan is paid off within six months, there will be no interest charged.
The city emphasizes that applying for a RAEDI emergency loan does not disqualify businesses for applying for additional funds through other government programs, such as the Small Business Administration Emergency Loan Program or any of the State of Minnesota Department of Employment & Economic Development assistance programs.
Applications are due April 3. More information is available here.
‘We will not weather this storm’
Of course, restaurants are among the businesses being hit hardest by the pandemic. And on Friday, we learned of what appears to be the first casualty to the local restaurant industry since the governor ordered establishments across the state closed.
Le Petit Café, located on North Broadway, announced on Facebook that it has closed its doors permanently. It had been open since last April.
“Our small burgeoning business has been on a knife edge for a while, and as the world has seen in the last few days, restaurants cannot survive on this edge for very long,” wrote owner Deirdre Conroy. “A restaurant’s world is immediate, ever changing, never stopping. But here we are with a massive stop sign in front of us. We will not weather this storm, and we will not make it out the other side.”
She added, “It has been my immense pleasure getting to know and admire our talented staff, our gracious guests, and most importantly our fabulous suppliers. We could not have done any of this without you all.”
While most restaurants and bars impacted by the emergency order anticipate re-opening, industry insiders have told me privately that — depending on when the order is lifted — it is likely that many establishments will not be able to survive this economic crisis.
If you want to continue supporting local restaurants, but are unsure which ones remain open, there are a number of helpful guides out there, including this one from Tiffany Alexandria of Choochoo-ca-Chew.
Sean Baker is a Rochester journalist and the founder of Med City Beat.
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