Jay Sachetti joined Jeff O’Brien, partner at Husch Blackwell and Dyanne Ross-Hanson, president of Exit Planning Strategies talked about the market for mergers and acquisitions, exit planning opportunities for companies that don’t end up for sale and how companies can maximize their eventual sale price during an early October panel at the first Upsize on Tap event at Summit Brewing Co. in St. Paul.
When the state Legislature passed a law requiring employers to provide paid leave and safe time for employees, Justin Bieganek started hearing differing details from friends, colleagues and peers.
The U.S. Small Business Administration (SBA) in September announced several tweaks to its Economic Injury Disaster Loan (EIDL) program aimed at helping small businesses and communities still suffering due to the effects of COVID-19.
The biggest changes increase the loan limit from $500,000 to $2 million and offer two full years of deferred payments. The funds can be used for working capital or paying down debt.
SBA officials also have ramped up outreach efforts to ensure the organization is connecting with the smallest business and those located in low-income communities potentially eligible for other lending programs, as well.
Brian McDonald, district director for the SBA’s Minnesota District Office, shared some thoughts on the importance of the program and its changes. The conversation was edited for length.
Tellijohn: What do business owners need to know about the program and these changes?
McDonald: Six policy changes went into effect September 8th. The big one increased the maximum loan. It had moved earlier this year from $150,000 to $500,000 and we still have money available. The program has been extended through the end of 2021 or until funds are depleted.
Tellijohn: How does a company know if they qualify for these loans?
McDonald: I think these policy changes simplify it. The changes give some flexibility for particular industries. There is a list of around 20 industry codes where, as long as they have fewer than 500 employees per physical location in fewer than 20 locations, they might be eligible for this COVID EIDL program.
Otherwise, as of the date of the application, if you’re a business, including an agriculture cooperative, aquaculture enterprise nursery, or property that is, that is considered small under the SBA size standards, you can be a sole proprietor with, or without employees and independent contractor. And there’s no size standard for a non-profit or faith-based organization of any size. It’s kind of a case-by-case situation.
Tellijohn: Why were these changes made?
McDonald: We’re just making sure we’re meeting the needs of small businesses. Now that the Paycheck Protection Program has pretty much ended, beyond working on forgiveness provisions, this is really the only available program. Right now, this is the agency’s area of focus, and the priority is to make sure businesses know about this COVID EIDL program and know that more businesses have access to it. More than 40,000 Minnesota-based businesses have received the COVID EIDL loan. And we have 530,000 small businesses here. So, less than 10 percent have accessed funds so far.
Tellijohn: How does one apply?
McDonald: You do apply directly through the SBA. If you’re new, you’re going to do it online on the sba.gov website. If it is your first time, then you complete the EIDL intake form at sba.gov/eidl. If you’re asking for an increase, you go back into your SBA portal and submit a loan modification through your existing portal.
And there are different thresholds. If you need something immediate, seek less than $500,000. We’re not going to start processing applications for more than $500,000 until October 8th. There is no collateral needed for anything under $25,000 and no personal guarantee under $200,000.
Tellijohn: Where can people go to learn more?
McDonald: A great place to go would be sba.gov/MN where people can sign up for our newsletter. All of our contact information is on our district website there.
Brian McDonald is district director for the Minnesota District of the SBA: 612.370.2324; mi*******@*ba.gov;
www.sba.gov/mn.
The use of fractional executives — those hired by companies on contract to work a fraction of the hours at less cost than full-time hires — has been on the rise for years. That accelerated during the COVID-19 pandemic. John Arms, co-founder of Voyageur U, helped establish the organization to help educate free agents on what it takes to make it as a fractional executive. He’s now put that knowledge into print, recently releasing the book “Consult Your Way to a Full-Time Job.” Arms joined Upsize Minnesota Editor Andrew Tellijohn to talk about how the book can help potential fractional executives carve their new paths.
Branding expert Kate DiLeo wrote a book about how branding agencies need to do less storytelling and more listening to better meet their clients’ needs.
