On the first day of the 2020 special session, the Minnesota Senate passed Senator Paul Anderson’s (R- Plymouth) legislation unanimously 67-0 to appropriate over $60 million for small businesses who are in crisis due to the stay at home orders and the coronavirus pandemic. The bill takes $60 million from the federal Coronavirus Relief Fund and $2.5 million from the Small Business Guarantee Loan program to provide relief grants to Minnesota small businesses.
“Businesses in every community across Minnesota have been devastated due to the government ordered shutdown,” said Senator Anderson. “Government will never be able to make up for the loss and hardships our businesses have experienced over the last few months, but this financial assistance will hopefully help them weather the storm of the shutdown and give them hope through this challenging time.”
“Most business owners have invested their entire life savings to start and sustain their business,” said Senator Anderson. “They’ve mortgaged their future to chase the American dream and they are resilient and determined. If there is any hope for the economy to turn around, the recovery will be led by main street businesses and the dedicated people who sacrifice to keep them open. This bill is an important lifeline to helping our small businesses hold on and live to survive another day.”
A business is eligible if it is owned by a permanent resident of the state of Minnesota, has a permanent location in the state, employs 50 or fewer full-time staff, and can demonstrate financial hardship as a result of COVID-19. Once approved, eligible businesses may receive grants of up to $10,000 to use for working capital to support payroll expenses, rent, mortgage payments, utility bills, and other similar business expenses.
The bill designates $31.25 million to be distributed to businesses in Greater Minnesota and $31.25 million for distribution in the seven-county metropolitan area. At least $18 million of the funds would be designated for microbusinesses of 6 or fewer employees. A minimum of $15 million must be distributed as follows – $10 million to minority-owned businesses, $2.5 for veteran-owned businesses, and $2.5 million for women-owned businesses.
Additionally, a minimum of $2.5 million in grants will be awarded to operators of permanent indoor retail space and food markets with an ethnic cultural emphasis. Grants of up to $250,000 will be available and funds must be used and distributed to maintain existing tenets, prioritizing 50% for rent forgiveness.