Port Authority Emergency Loan Fund 2020 (For Businesses located in the City of Winona Only)
Questions on this loan fund can be directed to (507)457-8250. Completed forms are to be emailed to Portloan@ci.winona.mn.us.
The Port Authority of Winona has established an Emergency Loan Fund. The purpose is to provide financial assistance to small local businesses directly affected by the Governor’s Order during the COVID-19 Pandemic event.
Loan Program Requirements and Terms
- Business has to be located in the City of Winona, Minnesota.
- Business is directly affected by the Governor’s Order (Business Eligibilty List)
- Businesses with employees who have a location in the City.
- Loan will be at 0% interest and amortized up to five years.
- Payments will be deferred until January 20, 2021.
- Loans may be repaid in full at any time during the term of the loan without penalty.
This fund is only for gap funding to provide quick relief during a time of hardship. A list of programs to assist in more permanent financing is attached for your information.
The Business will enter into a loan agreement, personal guarantee and a promissory note.
Loan Amount Tier 1 – Up to $6,000
Tier 2 – $6,001 – $20,000
What is the interest rate? 0%
When will payments start? Repayment will begin no later than January 31, 2021.
What can I use the loan for? The loan can be used for working capital.
The maximum amount does not cover my needs. What should I do?
The SBA is offering a variety of resources to businesses affected by closure, cancellations and other challenges related to COVID-19.
Port Authority Revolving Loan Fund
The Port Authority of Winona has a local Revolving Loan Fund for qualifying businesses to obtain funds for business loans. The Port works in conjunction with your local financial institutions to assist you. This is a program to assist in financing business expansion in Winona.
Terms of Loans:
Loan funds may be used for machinery and equipment, acquisition, building construction and expansion, and working capital. The loans range from $10,000 to $150,000 with interest tied to the prime rate with a minimum rate of 3%. The term is based on the item financed. A maximum of 50% of project costs may be financed.
Process for Applications:
The Port Authority Revolving Loan Committee reviews applications for funding. The process is similar to applying for a loan through your lender. The Port may provide matching loans for 50% of project costs up to a maximum of $150,000 per project. Other funds must be secured through private financing for the balance of the project. There are job creation thresholds and wage level requirements businesses must meet to participate in the program.
The Port Authority of Winona was established in 1968 to maintain and operate the river port of Winona and promote the river and commerce. Today the Port Authority is the facilitator for local economic development activities for the City of Winona.
What Do We Need To Proceed:
- A project description
- Cost summary
- Identify private sector participant
- Financial Statements and projections
- Business Plan (if available)
- RLF Application PDF
Department of Employment and Economic Development (DEED)
The Port Authority works closely with the Minnesota Department of Employment and Economic Development (DEED). The Department has financing programs and training funds available to assist businesses. The Port Authority can direct businesses to the proper areas for this assistance.
SBA 504 Corporation
The U.S. Small Business Administration 504 program allows small to medium sized businesses to obtain long-term, fixed rate financing at low rates for up to 20 years. The program is designed to promote economic growth by stimulating small business investment.
Southern Minnesota Initiative Foundation (SMIF)
The Southern Minnesota Initiative Foundation offers businesses that innovate, particularly those that use this region’s resources to develop high-tech products and services. Loan funds for bio-business, entrepreneurs, and minority-owned businesses are available.
Please contact us, and we will help you in obtaining more information about resources that may be available to you.