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Financial Resources for Providers During COVID-19

There are a number of loan and grant programs available to help financially support you and your program during the Coronavirus (COVID-19) crisis. Currently available programs are described below. Child Care Aware of Minnesota will continue to update this page with additional resources as they emerge.


Economic Injury Disaster Loans and Emergency Grants
Child care providers may be eligible for a low-interest federal disaster loan and a one-time emergency grant of up to $10,000 from the Federal Small Business Administration.

Economic Injury Disaster Loans (EIDL) may be used to pay fixed debts, payroll, accounts payable, and other bills that can’t be paid because of the disaster’s impact. The interest rate is 3.75% for small businesses, with long-term repayments in order to keep payments affordable, up to a maximum of 30 years. Terms are determined on a case-by-case basis, based upon each borrower’s ability to repay.

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This program includes an Economic Injury Disaster Emergency Grant for up to $10,000 and is made available, upon request, within 3 days of applying to the EIDL program. The grant does not need to be repaid under any circumstance, and may be used to keep employees on payroll, to pay for sick leave, or pay business obligations, including debts, rent, and mortgage payments.

The U.S. Chamber of Commerce has a helpful guide and checklist for applying for these loans. They note that these payments are capped, so applications should be submitted as soon as possible.


Paycheck Protection Program
Child care providers may also be eligible for the Paycheck Protection Program, a loan program that helps businesses keep their workforce employed during the Coronavirus (COVID-19) crisis. This loan will be fully forgiven if the funds are used for payroll costs, interest on mortgages, rent, and utilities. At least 75% of the forgiven amount must have been used for payroll; this includes paying oneself.

You can apply for this load through a local credit union or bank. Application are accepted being accepted now. The U.S. Treasury Department has issued an application guide for this program.


Minnesota Unemployment Insurance
If you have become unemployed due to the pandemic, you or your employees may want to apply for unemployment insurance through the State of Minnesota. Unemployment compensation is available to self-employed workers, but the above loan programs offer a higher rate of income replacement than the unemployment compensation system.

Learn more on the Minnesota Unemployment Insurance website.