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Legislative News and Views - Rep. Brian Daniels (R)

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Legislative Update from Rep. Brian Daniels

Friday, April 03, 2020

Dear Neighbors,

I’ve received several questions from folks about what sort of state assistance is available for childcare providers during the COVID-19 outbreak.

As of this week, $30 million in emergency childcare grants are available for application by eligible providers through Child Care Aware.

This funding was included in the COVID-19 bill passed last week for childcare providers prioritizing care for the children of essential workers.  Applications are due April 15 with grant notifications following by April 20.

Check out this link for more information: https://www.childcareawaremn.org/providers/emergency-child-care-grants/

Resources for Self-Employed Workers

Those of you that are self-employed have reached out regarding your eligibility for unemployment benefits. This week, we’ve started to receive some answers about your status.

Benefits and relief programs are being made available to self-employed individuals for the first time through Minnesota's Unemployment Insurance Program, however that program still needs to be set up through the Department of Employment and Economic Development (DEED).

DEED is working with the federal government to make these benefits available as quickly as possible, and we will be sure to send along information as soon as it becomes available, here’s a guide that will help you through the process when it does: mnhouse.gop/2w1xgRs.

Small Business Assistance Guide

Several state and federal programs have been built, since the start of the COVID-19 pandemic, to assist small businesses that are struggling due to business closures.

If you are a small business that is having issues with your application, or questions about whether your business is eligible for a program, please contact DEED using the resources available on their website for the fastest and most accurate answers. Additionally, programs passed by the federal government may not yet be available — so please keep checking the federal program websites for updates.

Different programs make sense for different businesses, so DEED is providing this summary guide to help small businesses quickly see which programs might be right for their situation.

These include: 

  • SBA Economic Injury Disaster Loan (EIDL) – all Minnesota small businesses should apply for these
    • Summary of Program: Low interest, long term Economic Injury Disaster Loans for up to $2 million: The first payment is deferred for 12 months. The application has been simplified and can be completed 100% online through our improved web portal at www.sba.gov/disaster. These loans may be used to pay fixed debts, payroll, accounts payable and other bills that can’t be paid because of the disaster’s impact. The interest rate is 3.75% for small businesses. The interest rate for non-profits is 2.75% and the loans can be extended over 30 years.
  • SBA Paycheck Protection Program (PPP)
    • Summary of Program: The SBA PPP is a new federal $350 billion loan program at SBA for small businesses, self-employed people, and gig workers to help them from going under due to the COVID-19 pandemic. If employers maintain payroll, the loans would be forgiven.
  • Pandemic Unemployment Assistance Program
    • Summary of Program: Congress authorized a new Pandemic Unemployment Assistance program that covers those who do not qualify for regular Unemployment Insurance benefits, such as independent contractors and self-employed people. The program was authorized but must be created by the states, so Minnesota must build out this program before it can be implemented. More information will be available soon, however it could be several weeks before payments begin.
  • Minnesota Small Business Emergency Loan Program
    • Summary of Program: Minnesota Small Business Emergency Loans are made through an approved lender – you can find FAQs, application materials and lenders on the DEED website. These loans are for $2,500 to $35,000 and at a 0% interest rate. There is a total of $30 million available for this program.
  • Minnesota Small Business Loan Guarantee Program
    • Summary of Program: This program provides a 80% loan guarantee for loans up to $250,000 made by a qualified economic development lender within this program. Details for business are not yet on DEED’s website but DEED and agency partners are reaching out to lenders to make them aware of this new program – look for more details soon. This program is intended to incent the private market to make loans to small businesses and provides the guarantee for those loan dollars. The state is providing a loan guarantee of $10 million which is likely to leverage between $20 and $25 million in lending by private banks.
  • Unemployment Insurance Shared Work Program
    • Summary of Program: The Shared Work program offers an alternative to layoffs for employers facing a temporary downturn in business. Administered by DEED’s Unemployment Insurance Division, the program allows employers to divide available hours of work among a group of employees instead of implementing a full layoff. These employees may then receive partial unemployment insurance benefits while working reduced hours. The purpose of Shared Work is to avoid a layoff, not to subsidize wages.

For more information on any of these programs, visit the DEED website here

Stay in Touch

Please reach out to my office if you have questions or if I can assist you in any way.

I can be reached by email at rep.brian.daniels@house.mn or via phone at 651-296-8237.

God bless,

Brian