Minneapolis dedicates more than $5M for COVID-19 relief for families, small businesses

MINNEAPOLIS (FOX 9) - To help with the COVID-19 crisis, Minneapolis city leaders will be dedicating more than $5 million to help impacted families and businesses. $3 million in gap funding will go toward assistance with rental housing and $2.2 million will be used toward small businesses.

Rental Housing

The city will allocate $2 million in emergency housing assistance payments to help low-income residents who have lost income due to the crisis. This program is designed to serve those receiving help by other COVID-19 related federal or state assistance.

The amount of assistance will depend on the needs of the household. In most cases, assistance will not exceed $1,500, but in extraordinary cirumstances up to $2,000 can be provided. Eligible families must meet the following requirements:

Reside in Minneapolis
Have incomes of 30% AMI or below
Have experienced a significant loss of income (from self-employed or any other source) due to the COVID-19 emergency
Households are eligible irrespective of immigration or documentation status

Eligible expenses include rent payments, such as rent in arrears, rent due within 15 days and utility payments. Payments will be made directly to the rental
property owner and/or utility company.

Up to $1 million will be added to Minneapolis' Stable Homes Stable Schools’ Housing Stability Fund, which provides short-term assistance to families experiencing homelessness or housing instability. The expansion will open eligibility to all of Minneapolis Public Schools' elementaries. Eligible families must meet the following requirements:

Have at least one child enrolled in one of MPS’ 39 elementary schools
Have incomes of 50% AMI or below
Households are eligible irrespective of immigration or documentation status

For both the Emergency Housing Assistance Program and the Stable Homes Stable Schools Emergency Expansion, the city is planning for the Tenant Resource Center to manage the intake process. The city is working to launch these funds and start the application process in mid-April. The city's webpage on COVID-19 will be updated with information on how to apply once the process is finalized.

The City is also providing $275,000 in funding to the Minnesota Homeownership Center, where homeowners can be connected to free advisors for guidance.

Small Businesses

As for small businesses, $2.2 million will be provided in gap funding. The city will offer forgivable no-interest loans that will come in fixed amounts of $5,000 or
$10,000, depending on need. Eligible small businesses will:

Be located in a designated area of Minneapolis, such as Cultural Districts, Promise Zone, Green Zone, or ACP50
Have 20 or fewer employees and/or $1 million or less in annual revenue
$1 million or less in annual revenue
Self-employed workers are eligible and
Immigration status does not impact eligibility

The loan program will prioritize needs such as payroll and employee benefits, rent or mortgage payments, accounts payable and payments due to supply chain and other critical working capital needs.

The city is also changing its existing 2% Participation Loan Progam by setting the interest rate to 0% and expanding the eligible expenses to include working capital costs. Loans are available up to $50,000 to $75,000 for businesses citywide.

Eligible borrowers must meet the following requirements: