Minneapolis Gap Funding

The City is open to accepting donations from private individuals or entities for the Gap Funds for Housing and the Forgivable No-Interest Loans for Small Business Program. Donors could direct said donations to be expended consistent with the Program guidelines, but would not have any additional control over how the donation is allocated. Please contact us if you are interested in donating.


To combat COVID-19, leaders must act quickly but our actions must also be informed by the best obtainable data. That’s how the City of Minneapolis has approached assembling its new set of gap funds to support renters, families and businesses.

The state legislature authorized over $300 million and the federal government advanced a record-setting $2 trillion package to support residents and businesses impacted by the pandemic. At the local level, we’re taking steps to make sure that our new programs complement, not duplicate, the work made possible by the new state and federal funding.

Mayor Frey in partnership with the City Council and City leadership are dedicating more than $5 million for Minneapolis residents and businesses hit hardest by this crisis

Minneapolis Gap Funds for Housing 

In response to an immediate need created by the COVID-19 pandemic, the City of Minneapolis established a Gap Funds for Housing Program in April 2020. Through the new program, Mayor Jacob Frey directed $2 million to a new Emergency Housing Assistance (EHA) program and $1 million was used to temporarily expand the existing Stable Homes Stable Schools (SHSS) program.

The City received more than 8,000 applications for the Minneapolis Gap Funds for Housing during the application period in late April 2020. After removing duplicate applications and reviewing applications for initial eligibility*, nearly 6,500 applicants were given a randomized number. Approximately 74% of applicants were placed in the EHA program and 26% in the SHSS Emergency Expansion program.

Community Prevention Partners and City staff continue to work through the EHA list to complete the full verification and approval process for each applicant. The Minneapolis Public Housing Authority has completed review of all applications on the SHSS list and final assistance payments have been made.

Summary information for the approved applications for Gap Funds for Housing Program

*All initially eligible applicants for EHA lived in the City of Minneapolis. For the Stable Homes Stable Schools expansion, initially eligible applicants had a child enrolled in one the Minneapolis Public Schools’ elementary schools. Additional eligibility requirements were verified through the verification and approval process.

Minneapolis Gap Funds for Small Businesses

There’s no corner of our city that COVID-19 will leave untouched. But we know that the economic burden of the pandemic will impact some communities more than others. Our targeted business relief programs reflect that reality.

With $2.2 million in City funds, the Minneapolis Gap Funds for Small Businesses include new Forgivable No-interest Loans for small businesses with 20 employees or less and people who are self-employed along with a revamped 2% Loan program, adjusted to 0%.

Forgivable No-Interest Loans for Small Business

The new Forgivable No-Interest Loans for Small Business will come in fixed amounts of $5,000 or $10,000, depending on need resulting from the COVID-19 emergency.

Applications are no longer being accepted for these loans. Applicants will be contacted shortly regarding the status of their loan request.

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Eligibility, Requirements and FAQs

Who is eligible for this loan?
Businesses must be located in a designated area of Minneapolis, such as Cultural Districts, Promise Zone, Green Zone, or ACP50

Check your location eligibility online

Businesses must also:

  • Have 20 or fewer employees and/or $1 million or less in annual revenue;
  • Self-employed workers are eligible and
  • In good regulatory standing with the City

Please note: Immigration status does not impact eligibility.

I have a mobile business and/or I work from my home, am I eligible?

Businesses or self-employed workers without a separate business address should enter their home address.

What businesses are not eligible?

Businesses are not eligible if their primary services are any of the following:

  • gambling
  • adult entertainment
  • registered lobbying
  • multi-level marketing
  • billboards
  • renting commercial or residential property

Nonprofits are also not eligible for this loan program.

How much is the loan for?

A fixed amount of $5,000 or $10,000, depending on need resulting from the COVID-19 emergency.

Can I apply for this in addition to State and Federal funding?

Yes. Businesses can apply for this loan in addition to any Federal or State funding, such as an SBA or DEED loan.

How do I apply?

Applications are no longer being accepted for these loans. Applicants will be contacted shortly regarding the status of their loan request.

What documents do I need?

To apply, you will need to upload

  • Documentation of business revenue from 2019 (or the business’ most recent fiscal year if different), e.g. tax return, financial statements, reports, or any such records that can verify business revenue.
  • Documentation of payroll and employee count, if any, as of March 1, 2020.

How should sole proprietors, independent contractors, and the self-employed complete the “Employment” part of the application?

Self-employed people with no other employees should enter “0” for the number of W-2 full or part time employees. No payroll documentation is needed for businesses without employees. Documentation of business revenue is still required, which could include tax returns, financial statements, or other records of business income.

Will the City look at my credit?

No. The City will not be looking at credit scores, and no collateral is required.

What will happen if there are more loan requests than available funds?

If we receive loan requests in an amount that exceeds available funding we will use a lottery system with eligible applicants to determine final loan recipients.

How will I be notified if I am selected to receive the loan?

Applicants will be notified of their status by email. Please note that no decisions will be made prior to the application deadline (April 20).

What can I use the money for?

Funds can be used for:

  • Payroll and employee benefits
  • Rent or mortgage payments
  • Accounts payable and payments due to supply chain
  • And other critical working capital needs

Will I need to make payments?

No. Loans have deferred payments for 12 months, and be 100% forgivable if the business continues to operate in Minneapolis in good regulatory standing.

How will I know if my loan will be forgiven?

The loans are 100% forgivable after 12 months if the business continues to operate in Minneapolis and remains in good regulatory standing. Borrowers will submit quarterly reports to the City. Before the end of the twelve-month deferral period, borrowers will submit a final report. The City will use the information in that report, and any follow up information requested of the borrower, to determine whether the borrower meets the criteria for loan forgiveness.

What if I have questions about the application?

If you have questions about the application, contact Minneapolis 311.

  • For reasonable accommodations or alternative formats please contact the following resources.
  • People who are deaf and/or hard of hearing can use a relay service to call 311 at 612-673-3000. TTY users call 612-263-6850.
  • Para asistencia 612-673-2700
  • Rau kev pab 612-673-2800
  • Hadii aad Caawimaad u baahantahay 612-673-3500.  

Revamped 2% Loan Program to 0%

We’re modifying the city’s existing 2% Participation Loan program for small businesses in two key ways:

  1. Setting the interest rate to 0%.
  2. Expanding the eligible expenses to include working capital costs.

These loans are available to businesses city-wide in amounts up to $50,000 or $75,000 depending on location to be matched by the lending partner. 

These loans are originated and serviced by participating lenders and will have the following terms:

Eligible borrowers will:

City Loans

We’ve also taken a closer look at city loans administered before the pandemic, and identified several ways we can help businesses do more.

For eligible and existing City-issued loans less than $200,000 to home buyers and businesses, the City is moving forward with six months of forbearance and deferred payments. The City will also seek forbearance on its commercial real estate loans greater than $200,000.

More of What Works

Finally, we’re doing more of what we know works.

We’re stepping up support from our Business Technical Assistance Program (B-TAP) with a $300,000 infusion, so more people can get city support navigating challenges brought by COVID-19.

We’re also investing $100,000 in the Twin Cities Hospitality Fund, a partnership fund with labor, civic, and business leaders to support low-wealth employees in the hospitality and service industry with micro-grants to cover basic needs.

Last updated Dec 3, 2020

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Accessibility:
For reasonable accommodations or alternative formats, contact 311.
People who are deaf or hard of hearing can use a relay service to call 311 at 612-673-3000.
TTY users can call 612-263-6850.

Para asistencia 612-673-2700, Yog xav tau kev pab, hu 612-637-2800, Hadii aad Caawimaad u baahantahay 612-673-3500. 

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