On the first day of the 2020 special session, Senator Carla Nelson (R-Rochester) and the Minnesota Senate approved a bipartisan bill to provide $60 million for small businesses who are in crisis due to the coronavirus pandemic and resulting economic hardship. 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. 

“Travel up and down any Main Street in virtually any Minnesota community and the economic devastation caused by the coronavirus will be plain as day,” said Sen. Nelson. “This bill won’t solve everything, but for many businesses that are teetering on the edge of survival, the grants in this bill could be just what they need to make it through until we can fully reopen.”

A business is eligible if it has a brick and mortar location in Minnesota, is owned by a permanent resident, 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.