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 our small businesses right away. These businesses have been ravaged by the coronavirus pandemic and the unfortunate reality is that some of them will never open their doors again,” said Senator Eric Pratt (R-Prior Lake), chair of the Jobs and Economic Growth Finance and Policy Committee and a co-author of the bill. “Many of these businesses have not yet received federal assistance and simply cannot wait any longer. As we continue to fight against the coronavirus, we also need to fight for the Main Street businesses on which we depend on in our communities.” 

The legislation includes $20 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 Eric Pratt represents Scott County in the Minnesota Senate. He serves as chair of the Senate Jobs and Economic Growth Finance and Policy Committee and is an assistant majority leader.