MN Small Business Relief Grants Program: What You Need To Know

Update as of December 28, 2020:

The Minnesota Department of Revenue will send COVID-19 Business Relief Payments to eligible businesses under a $216 million economic relief package signed into law December 16. Eligible business owners do not need to take any action to receive this aid. Eligibility and payment amounts are based on the program requirements that were included in the legislation and outlined below.

The three new programs included in Minnesota’s small business relief package signed into law December 16 are: 

• COVID-19 Business Relief Payments (Aid for Restaurants, Bars, Gyms, and Bowling Centers) – The Minnesota Department of Revenue (DOR) will administer this funding and notify eligible businesses through their e-Services account by December 31, 2020. Eligible business owners do not need to take any action to receive this aid. Payments will be mailed in early January 2021. For more information, please review eligibility, payment amounts, and the timeline.   
• Minnesota Convention Center Relief Grant Program – This temporary program was established to provide economic relief for convention centers adversely affected by the COVID-19 pandemic. This program will make grants of up to $500,000 to eligible convention centers located in Minnesota. DEED will administer this program. All convention centers interested in receiving a relief grant must submit a completed application. Applications will be available on January 5th.   
• Minnesota Movie Theater Relief Grant Program – This temporary program was established to provide economic relief for movie theaters adversely affected by the COVID-19 pandemic. This program will make grants of up to $150,000 to eligible movie theaters located in Minnesota. DEED will administer this program. All movie theaters interested in receiving a relief grant must submit a completed application. Applications will be available on January 5th.   
• County Relief Program – We are working closely with Minnesota counties to disburse money. All counties must apply, forms to do so will be available later this week.

Eligible Businesses 
This program provides direct payments to businesses required to temporarily close or reduce services in November under Executive Order 20-99. Businesses in the following categories, as reported by the Minnesota Unemployment Insurance program, may be eligible: 

• Full- and limited-service restaurants
• Cafeterias and buffets
• Caterers
• Bars
• Breweries with taprooms
• Family wineries with tasting rooms
• Distilleries with tasting rooms
• Bowling centers
• Gyms and fitness centers

Program Requirements
We will send payments to eligible businesses that meet the rest of the program requirements:

• Located in Minnesota
• Had at least $10,000 in taxable sales in 2019
• Filed Sales Tax returns in 2019 and 2020
• Experienced a 30% drop in year-over-year taxable sales for April-September periods
• Required to temporarily close or reduce services by Executive Order 20-99

Relief Payment Amounts
Eligible businesses will receive a payment based on their number of employees and participation in the state Unemployment Insurance system. The payments are considered taxable income and will be calculated as shown below.

Small businesses not in the state’s Unemployment Insurance system will receive $10,000.

Qualifying small businesses not in the state’s Unemployment Insurance system will receive $10,000.

Payment Process

1. We will use current tax and unemployment records to determine what businesses are eligible and the amount of their aid payment. 
2. We will notify eligible businesses though their e-Services account by December 31, 2020. 
3. We will mail payments to eligible businesses in early-January 2021. Payments will be mailed to the main sales tax account address. Electronic payments are not available for this program.

The latest payment and program information will be updated on the MN Department of Revenue Website.

On Tuesday, June 23 through Thursday, July 2, Minnesota will be accepting applications for $10,000 grants under the Minnesota Small Business Relief Grants Program.  This program makes $62.5M available to Minnesotan-owned and operated small businesses with 50 or fewer full-time employees that demonstrate financial hardship due to the COVID-19 outbreak.

The bill, which had bipartisan support, will provide grants of $10,000 to businesses with 50 or fewer employees. Half of the funding will go toward businesses in Greater Minnesota, and at least $10 million will go toward minority-owned businesses.

Funding will be split 50/50 between Greater MN and the 7-county metro, with $18M for businesses with six or fewer FTEs, 10M for minority-owned businesses, $2.5M for veteran-owned businesses, $2.5 million for women-owned businesses, and $2.5M for cultural malls. Applications must be made online at the DEED website, which also provides FAQs.

Most of the money for the bill will come from the federal CARES Act, which was passed in March. An additional $2.5 million will come from the Department of Employment and Economic Development's emergency loan program.

Here are some details. All of this and other information can be found on the DEED website:

Eligibility

To qualify, an applicant must:

• Be a private for-profit business that has a permanent physical location in Minnesota.
• Be majority owned by a permanent resident of Minnesota.
• Be in good standing with the Minnesota Secretary of State and the Minnesota Department of Revenue as of March 1, 2020.
• Employ the equivalent of 50 or fewer full-time workers.
• Be able to demonstrate financial hardship as a result of the COVID-19 outbreak.

To qualify, an applicant must NOT:

• Have received funds under Small Business Emergency Loan (SBEL) program.
• Be a home-based business (except for child-care providers).

FAQs

When and how do I apply?

Applications are now open and will be accepted until 5:00 p.m. on Thursday, July 2. Application to apply.

Can I send in a paper or email application?

No. Due to the large volume of applications, we can only accept applications submitted through the online form.

Who is selecting the winners? How will selections be made?

Per the authorizing legislation, grants will be awarded through a lottery (i.e., a randomized selection process). This process will be conducted by the Minnesota Department of Employment and Economic Development (DEED) in consultation with the Minnesota Lottery or with assistance from the Minnesota Lottery and will be observed by an independent third party. The methods, procedures and certification of fairness of the selection process will be posted publicly on this website.

Businesses that are majority-owned by military veterans, women, and ethnic or racial minorities; employ 6 people or fewer; and/or were significantly impacted by Executive Orders (i.e. with their operations restricted to 50% or less of normal capacity) on May 18, will receive priority considerations in the selection process.

Are nonprofit organizations eligible for this program?

No. Only private for-profit businesses are eligible for this program.

I am a resident of another state, but my business has a permanent physical location in Minnesota. Is my business eligible for this program?

No. The majority ownership of a business must be owned by one or more permanent residents of Minnesota.

My business leases space within the permanent physical location of another business (for example, a chair in a barbershop or a store within a mall, etc.). Is this considered a permanent physical location?

Yes.

I am a resident of another state, but my business has a permanent physical location in Minnesota. Is my business eligible for this program?

No. The majority ownership of a business must be owned by one or more permanent residents of Minnesota.

Go to the DEED website for more answers to FAQs and to find the application.

DEED will also be hosting webinars on how to apply:

June 25 - 7:00 - 8:00 p.m
June 26 - 4:00 - 5:00 p.m.
June 27 - 10:00 - 11:00 a.m.
June 28 - 3:00 - 4:00 p.m.
June 29 - 10:00 - 11:00 a.m.
June 30 - 7:00 - 8:00 p.m.

We are here for you Minnesota and will continue to provide any new information we have to help you and your small business during this time.