On Wednesday, the Minnesota Senate Jobs and Economic Growth Finance and Policy Committee passed legislation that makes emergency grants and loans available to small businesses impacted by the COVID-19 pandemic. The legislation, Senate File 4481, passed the committee with bipartisan support.

“This is something we can do right now to get capital in the hands of small businesses that are really hurting. It is through no fault of their own that these small businesses have seen a dramatic reduction of revenue over the past six weeks – and the sad reality is that some of those businesses will never recover. We must protect the job creators and economic engines of our communities,” said Senator Karin Housley (R-St. Marys Point), a co-author of the legislation. “This bill will not solve all of our problems, but it will provide us with a critical tool to stabilize the market and provide relief to the many business owners, employees, entrepreneurs, and their families across Minnesota.”

The legislation includes $10 million from the state’s general fund for the Minnesota Department of Employment and Economic Development (DEED)’s Small Business Emergency Loan Program. Small businesses are eligible for a loan if they can demonstrate they have been “directly and adversely affected by the COVID-19 peacetime emergency…”

The bill also includes $10 million from the funds received through the federal CARES Act for grants to small businesses – $5 million for small businesses in Greater Minnesota and $5 million for small businesses in the seven-county metropolitan area. Grants of up to $10,000 will be available to small businesses that are located in Minnesota, employ ten or fewer full-time workers, and can demonstrate financial hardship as a result of the coronavirus pandemic. Grant funds may be used to support payroll expenses, rent, mortgage payments, utility bills, and other expenses that occur in the regular course of business.

The legislation continues to move through the committee process.

Senator Karin Housley represents Forest Lake, Stillwater, and the surrounding St. Croix Valley in the Minnesota Senate. She serves as chairwoman of the Senate Family Care and Aging Committee and is an assistant majority leader.