Small Business Emergency Assistance Program

The Shoreview Economic Development Authority (EDA) has authorized a second round of the small business emergency assistance forgivable loan program. The program will provide financial assistance to locally owned and operated businesses adversely impacted by the COVID-19 pandemic.

Who is Eligible: 

Locally owned and operated businesses with 40 employees or less.

Grant Terms: 

Full service restaurants - up to $10,000
All others, up to $5,000,

Funds are to be used for eligible expenses.

Application:

  • Starting 12/18 we will be accepting applications for those impacted by Executive Order 20-99, including but not limited to restaurants, gyms, fitness centers, dance studios and martial arts facilities. Click here for application
  • All other qualifying businesses are encouraged to apply starting 1/5. 
  • Applications, and supporting documentation, should be submitted at this secure upload site 

Reporting (for Round 1 or Round 2):

If your 2 month timeframe is complete, the following is needed from you in order to get the funds forgiven:

  • SBEA Expense Reporting Form - Please sign/fill out the attached form and return it to us, with the required documentation.  Click here for reporting form. 
    • The form, along with supporting documentation, should be submitted at this secure upload site 

Click the headings below for additional information.

Assistance Program

Eligibility Requirements

A business must demonstrate that its operations have been directly and adversely affected by the COVID-19 pandemic.

Eligibility

  • Be an eligible business including locally owned and operated businesses noted in Executive Orders 20-04, 20-08, and 20-99 such as:
    • Restaurants, cafes, coffeehouses and other places of public accommodation offering food or beverage for on-premises consumption
    • Gymnasiums, fitness centers, indoor sports facilities, indoor exercise facilities, exercise studios, businesses offering massage therapy or similar body work, spas, salons, nail salons, cosmetology salons and barber shops. This includes, but is not limited to, all salons and shops licensed by the Minnesota Board of Cosmetologist Examiners and the Minnesota Board of Barber Examiners.
    • Art, dance and music studios
    • Other businesses deemed nonessential under executive orders
    • Other businesses as approved by the EDA
  • Located in Shoreview
    • The business shall have a physical business address within the city and have been operating within the city long enough to demonstrate financial viability. 
    • Proof of address is required.
  • Employ 40 employees or less
    • This should be calculated prior to the issuance of the State of Minnesota Emergency Executive Order 20-04 (March 16, 2020). 
  • In operation before March 1, 2020
  • Be in good standing with the city
    • Be a conforming or legally nonconforming use under the current zoning regulations of the city
    • Not be in violation of the city’s zoning code
    • Not have any delinquent taxes, bills or charges due to the city
  • Proof of application for other public and private sector assistance 
    • Applicants are strongly encouraged to claim all applicable private and public insurance and utilize all other sources of applicable assistance available from other private and public sources, including requests for rent/mortgage, utility and loan deferrals or forgiveness. Applicants are also strongly encouraged to apply for emergency loans through the Small Business Administration (SBA) and Minnesota Department of Employment and Economic Development (DEED) prior to applying for this grant. For more information, review DEED'a guide to financial resources for Minnesota small businesses
    • Applications must include proof of application submittal, acceptance, approval and/or denial of state and federal emergency financing programs will receive additional consideration.

Ineligible Businesses

Assistance cannot be provided to businesses that:

  • Do not have a physical business address within the City of Shoreview (residential based businesses)
  • Derive income from passive investments without operational ties to operating businesses
  • Primarily generate income from gambling activities
  • Generate any part of its income from adult-oriented or tobacco/vaping-related activities
  • Have no current or historical financial statements
  • Previously received emergency funds from the city
  • Are classified as non-profit

Guidelines

Click here for the full Guidelines.

A summary of the small business emergency assistance program guidelines is below:  

Amount

Businesses may apply for an emergency grant of up to $10,000 for full service restaurants and up to $5,000 for all other eligible businesses. The EDA will determine the final amounts awarded based on scoring criteria.

Term

All grant funds must be used within two months of the grant contract being fully executed.

Uses

Awarded funds may be used exclusively:

  • Current payroll obligations (may not include employees who have been laid off) 
  • lease or mortgage payments
  • utilities 
  • accounts payable
  • property taxes
  • other critical business expenses that can’t be paid as a direct result of the COVID-19 pandemic.

Awarded funds may not be used for business owner’s/manager’s personal uses or expenses.

Proof of need

All applicants must demonstrate financial need for grant funds prior to approval. This includes but is not limited to the previous year’s annual gross revenue, average monthly gross revenue prior to COVID-19 and projected monthly gross revenue for the next three months.

Additionally, applicants are encouraged to provide evidence of application submittal, acceptance, approval and/or denial of state and federal emergency financing programs. This could simply include an email response from these agencies.

Disbursement of funds

Funds will be distributed within one to two weeks after a fully executed grant agreement has been received and depending on how grant recipients elect to receive funds.

Termination

The EDA retains the right to terminate any agreement under the emergency assistance program if a grant recipient is found to be in violation of any conditions set forth in the grant guidelines or grant agreement.

Right to deny

The EDA retains the right to deny any application for grant funding.

Grant agreement

After an applicant has been selected to receive funds, the grant recipient will enter into a grant agreement with the EDA. Funds will not be distributed for any grant award until a grant agreement has been executed by all required parties.

Reporting

As a condition for receiving grant funding, all grant recipients are required to submit a brief report to the EDA within two months after receiving grant funds, specifying how the grant funds were used and providing evidence in the form of paid invoices, statements or similar documentation.

Funding availability

The small business emergency assistance program has a limited amount of funds available. Grants will be provided to businesses that meet eligibility requirements. Funding will be provided until the funds are exhausted or the city-declared state of emergency declaration is lifted, whichever comes first.

Indemnification

All grant recipients will be required to indemnify the City of Shoreview the Shoreview Economic Development Authority and any officers acting on their behalf.

Application Process

The application is available here.

 Prior to applying, please review the program guidelines to determine if your business is eligible.

1. Complete the small business emergency assistance application

Applicants must complete the small business emergency assistance application. Application requirements include:

  • Basic details about the business
  • Basic employment and annual gross revenue information
  • Information on current operations, including whether the business is currently closed or is providing reduced services
  • Narrative descriptions and estimated calculations of the negative impacts on the business due to COVID-19
  • Narrative description of the current plans for resuming operations following the COVID-19 crisis
  • Supporting documentation, including:
    • Proof you own or lease the space your business is located in.
    • Proof of submittal, acceptance, approval and/or denial of SBA and DEED loan applications
    • Copy of page 1 from business’s most recent federal tax return indicating gross receipts or sales
    • A W-9 form (with signature)
    • Other supporting documentation you wish to provide to the EDA to assist in understanding the applicant’s situation.

2. Application review

Please submit completed application, and supporting documentation to our secure file upload tool. 

The priority application period those businesses listed in 20-99 will be Friday, December 18, through 4:30 p.m. Monday, Jauary 4. Applications received during this time will be evaluated starting January 5th. 

Starting January 5th, all other eligible businesses are encouraged to apply. Applications will be evaluated as they are submitted until funds are fully committed.

Applications will be evaluated and grants will be awarded based on business’ compliance with eligibility criteria and application evaluation scores. If additional information or documentation is needed, EDA staff will contact the applicant. Due to an expected high volume of applications, you may consider your application complete if staff does not request additional information within 10 business days after the initial application period ends on January 4th.

3. Fund disbursement

Funds will be distributed to businesses that meet eligibility requirements. Applications will be accepted up to the lifting of state and local emergency orders or when available funds are expended.

Funding Process

1. Notification of approval 

If an application is approved and funds are available, the applicant will be notified within 10 business days after the initial application period ends and provided with an electronic grant agreement for signature.

2. Disbursement of funds

Funds will be distributed within one to two weeks after a fully executed grant agreement has been received and depending on how grant recipients elect to receive funds.

3. Reporting fund usage

Small businesses receiving funds must commit to using the funds for eligible program expenses and must agree to document and report specific uses of the funds. Accordingly, all grant recipients are required to submit a brief report to the EDA within two months after receiving grant funds, specifying how the grant funds were used and providing evidence in the form of paid invoices, statements or similar documentation.

Additional Resources

For businesses needing additional resources, such as technical assistance or larger working capital loans, staff will provide ongoing assistance, working with partners and other levels of government to access resources as available, such as Small Business Administration (SBA) and Department of Employment and Economic Development (DEED) loans.

Staff will conduct a check-in with grant recipients within one year of the distribution of funds to learn the effect of the grant, business outcomes such as the economic impact of the grant program (including employees retained or rehired and sales) and whether they match the program’s desired outcomes of business and/or job retention.

The EDA retains the authority and discretion to approve or deny an application and reserves the right to subsequently add further priorities, change eligibility criteria or discontinue the program in response to changing circumstances. 

Contact

If you have questions or need assistance completing the grant application, contact COVIDloan@shoreviewmn.gov