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.

“The action we took today brings important relief to local businesses impacted by the governor’s recent executive orders – businesses we rely on every day,” said Senator Scott Newman (R-Hutchinson). “For many of these folks, getting this money in their pocket as soon as possible is going to be the thing that helps them survive the rest of this pandemic. That’s good news.

“But let’s not fool ourselves. The only reason we are here today is because of Gov. Walz’s mismanagement of the pandemic. Gov. Walz’s decision to use his emergency powers to close down businesses is the sole cause of nearly three-quarters of a billion dollars in relief packages during the last nine-plus months. And there are no indications the governor is going to relinquish his emergency powers or let small businesses reopen, so there will almost certainly be demands for further relief.

“This strategy does not work. The state can’t afford it, and businesses will not survive it. The only solution — I repeat, the only solution — is to let small businesses reopen. They need to have their revenue streams flowing, so they can resume paying the taxes to the state that we use to fund critical services, rather than rely on us for bailouts just to barely keep them afloat.

“That’s why I also voted, once again, to end Gov. Walz’s emergency powers. The ‘emergency’ portion of the coronavirus outbreak is over and has been for some time. There’s nothing about the state’s response to the pandemic that can’t be managed in coordination with the legislature, the way the founders intended. There simply is no longer a reason for one man to have such broad power.”

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.