Today the Minnesota Senate passed legislation to appropriate $60 million for small businesses in crisis from the stay at home orders and coronavirus pandemic. The bill was passed with bipartisan support. The bill takes $57.6 million from the federal Coronavirus Relief Fund and $2.4 million from the Small Business Guarantee Loan program to provide relief grants to Minnesota small businesses.

“This is a good bill that will help small businesses who need it, but businesses need more,” said Sen. Roger Chamberlain (R-Lino Lakes). “Nobody wants to put Minnesotans’ health in jeopardy. We can reopen the economy while keeping people safe and healthy. Big box stores all over are open. I have yet to hear a single persuasive reason that mom and pop shops can’t do the same.”

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 $30 million to be distributed to businesses in Greater Minnesota and $30 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 awarded to minority-owned, veteran-owned, and women-owned businesses.