City of Saint Peter Covid-I9 Micro Loan Program
The Saint Peter Economic Development Authority (EDA) and City Council have adopted guidelines for the implementation and administration of a COVID-19 Micro Loan Program. The intent of the program is to assist those local businesses most directly impacted by the Governor’s Executive Orders number 20-04 and 20-08.
COVID-19 Micro Loan Application
Contact Russ Wille at 507-934-0661 or email if you need additional information or have any questions.
ECONOMIC DEVELOPMENT AUTHORITY
COVID-19 MICRO LOAN
The purpose of this document is to establish guidelines for application and administration of the City of Saint Peter COVID-19 Micro Loan Program. These guidelines are intended to ensure fairness and to avoid discrimination in the application of loan procedures.
2. POLICY STATEMENT:
Recognition of Need: The City of Saint Peter recognizes the need to assist existing Saint Peter businesses with their immediate cash flow needs resulting from the loss of business revenues due to the COVID-19 outbreak.
3. PROJECT ELIGIBILITY:
3.1 Existing Saint Peter businesses within the following use classifications shall be eligible to participate in the COVID-19 Micro Loan program.
A. Cocktail Lounge
B. Fitness / Health Club
D. Hotel / Motel
E. Club / Lodge
F. Studio / Gallery
G. Retail Sales
H. Daycare / Childcare Centers
I. Cultural Services
J. Public Assembly
K. Salon / Spa / Barbers
3.2 Revolving loans shall be utilized to make rent, lease or mortgage payments as well as the payment of utility billings.
3.3 Subject to the limitations contained in Section 4.1 below, the maximum loan amount shall be determined by adding the mortgage, lease or rent payment to the identified utility payments. The monthly aggregate shall be multiplied by four (4) to determine the maximum amount of each loan made under this program.
3.4 For in-home daycare I childcare centers, the maximum loan shall be the amount determined based upon the provisions of section 3.3, multiplied by the percentage of the residence utilized for daycare / childcare services.
4. LOAN TERMS:
4.1 The maximum loan available to an individual business shall not exceed $10,000.
4.2 Loans shall be offered at a 0% rate of interest.
4.3 Repayment of the note shall be deferred to begin June 1, 2021.
4.4 Repayment shall be established at a rate of $100 per month.
5. LOAN SECURITY:
5.1 The loans shall be secured by a promissory note executed by the borrower.
5.2 When applicable, the note shall be further secured via a personal guarantee.
6. LOAN APPLICATION AND APPROVAL:
Revolving loan applicants which meet the established loan criteria may be administratively approved and the City Administrator shall be authorized to execute the applicable loan documents on behalf of the City of Saint Peter.