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. 

In addition, for the sixth time, the Minnesota Senate vote to end Governor Tim Walz’s peacetime emergency powers relative to the COVID pandemic. The state is currently in the midst of its longest peacetime emergency in history. Gov. Walz first put the state under emergency powers on March 13, 2020.

“I know businesses and workers are hurting, and I am glad they will be getting some help. But today’s relief bill should not distract from the larger problems about our approach to the pandemic,” said Sen. Torrey Westrom (R-Elbow Lake).

“When is this going to end? The governor has maintained an iron grip on power through every stage of this outbreak. There’s no commonsense behind it. There’s no solid science behind it, except maybe the governor’s own political science. There is no rhyme or reason. It’s time for the governor to stop trampling on the Constitution and address the pandemic the way the founders intended: by working in coordination with the legislature.

“Minnesotans don’t want one person running the show on his own, and frankly, they are not well served by Gov. Walz making all the decisions. They expect cooperation and coordination. The governor’s go it alone strategy has resulted in a crisis in our nursing homes, unnecessary and excessive shutdowns of small businesses, a generation of students left behind by closed schools, millions wasted on an empty warehouse “morgue,” and the list goes on.” It is time for the governor to give up his emergency powers and work with the legislature on navigating the outbreak.*

“I voted for the relief bill today, but the governor’s heavy-handed approach of shutting down our small businesses and restaurants, while large box stores stay open, is a grossly unsustainable approach to the pandemic. It defies common sense. We cannot keep reinforcing the governor’s bad decisions; we can’t continue to shut everything down and then simply send out money to soften the damage. There’s only one type of relief that will get us out of this crisis: ending the emergency powers, ending the shutdowns, and letting businesses and workers get back on the job.”

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 for those laid off because of the Governor’s shut downs or Covid-19.