The Minnesota Senate today overwhelmingly approved a $216 million emergency relief bill to help small businesses affected by Gov. Tim Walz’s most recent executive order. The goal of the relief package is speed: businesses are struggling under the weight of the governor’s restrictions, and need assistance as fast as possible. Under the agreement, the first relief checks could be mailed by the end of the month. The bill is the culmination of more than a month of bipartisan negotiations between the House, Senate, and governor’s office.

“Even before the governor’s latest executive order, I was still hearing from local businesses and workers who were barely making it,” said Sen. Justin Eichorn (R-Grand Rapids). “Getting this relief into their hands as soon as possible is an important step, but it’s not a substitute for what will truly save these businesses: allowing them to open their doors again, following every possible safety protocol. We have to take Covid seriously, but these folks are facing a financial crisis too and they can’t afford to stay closed down until the vaccine is widely available. It just isn’t going to work.”

The bill provides emergency assistance in three tiers:

• Direct relief payments: $88 million is allocated for businesses in industries that were directly impacted by the executive order, including bars, restaurants, and gyms. These businesses will receive a check mailed directly to them, with no need to apply. Assistance will be broken down as follows:
  • Businesses that are down 30% in revenue and have 0-20 employees will receive a $15k check
  • Businesses with 21-100 employees will receive $25k
  • Businesses with 101-300 employees will receive $35k
  • Business with more than 300 employees will receive $45k 

• Business grants: $14 million is approved for business relief grants available through DEED. These grants are aimed at businesses like movie theaters and convention centers.

• County-distributed relief: $114.8 million in relief grants will be distributed to counties based on a per capita formula. Counties will then allocate that money to businesses that were directly or indirectly impacted by the executive order. Counties will have wide latitude, but funding must be distributed by March 15.

All relief funds must be used to support payroll expenses, rent, mortgage payments, utility bills, and other similar expenses that occur in the regular course of business.

In addition, the bill extends unemployment insurance benefits for 13 weeks.