Dear Neighbors,
I trust you are well and navigating the challenges we are all facing. I’ve received lots of calls and emails from small business owners seeking information about loan programs and resources that are available to them. As we all know, business closures have had a significant impact on our local, state, national and family economies. I share your frustrations and so much has developed in a short time.
I wanted to again provide links and resources to help you and your businesses. The private sector, free enterprise, and small businesses are the drivers of our economy and I share your deep desire to get back to work. I have agreed with everyone who has urged me to contact the Governor to allow you to work with common sense and compassion. We need to balance as much economic activity as we can with the obvious health concerns. Thank you for all you have and will endure.
Assistance for Self Employed Workers
The Federal government is working with the Minnesota Department of Employment and Economic Development (DEED) to make benefits and relief available for self-employed individuals for the first time via Minnesota's Unemployment Insurance (UI) Program. A detailed How-To guide to apply can be found here.
DEED Commissioner Steve Grove has encouraged all self-employed and independent contractors to apply now even though you will likely be issued denials until federal guidance is ready. Despite the initial denial, your application will be ready and processed once federal changes are made.
Small Business Aid
Numerous state and federal aid programs have been built in recent weeks to assist small businesses that have been impacted by business closures.
If you have had issues with an application you have filed, or have questions about whether your business is eligible for a program, please contact the Minnesota Department of Employment and Economic Development (DEED) using the resources available on their website for the fastest and most accurate answers.
It is important to note that 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)
- 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.
Legislature Approves Workers Compensation Bill
On Tuesday, the Minnesota Legislature overwhelmingly approved legislation to provide presumptive workers compensation insurance to front-line workers (law enforcement, medical professionals, and others) who contract COVID-19.
While the bill may not be perfect with more work to be done and further details to be determined, I ultimately support the bill’s intent.
The bipartisan agreement, that was reached on this important legislation provides front-line workers with peace of mind knowing that the State of Minnesota has their backs and supports the work they do. The entire Lakeville community owes a tremendous debt of gratitude to the medical professionals, law enforcement officers, and everyone else on the front-line working so hard to keep us safe and healthy. The sacrifice and the critical role you have in this epidemic has not gone unnoticed.
Today’s vote was also the first time I have returned to the Minnesota House since self-quarantining over three weeks ago following contact with an individual that had a presumptive case of COVID-19. My family and I are all feeling healthy.
Wine and Food To-Go?
Please continue to support our local establishments if you can. While curbside business is helping them hold on, it’s sad to know that some have had to let go as much as 90% of their staff while working as hard as ever just to cover as much of their overhead as they can.
I am working on a way we can help restaurant workers and businesses with “Wine and Beer ToGo”. This proposal would allow all currently licensed restaurants to sell pre-packaged wine and beer with food orders—for both carry-out and delivery.
Other states are allowing temporary “take out” of beer and wine, including Texas, New York, California, Maryland, Colorado, Illinois, South Carolina, New Hampshire, and the City of Fargo.
In some cases, beer, wine, and mixed drinks account for up to 50% of restaurant sales. Giving establishments this option is an easy way we can help them, reduce some regulations, and let restaurants turn some of their inventory into cash—without further government spending. Wine and beer-to-go is faster and easier than asking restaurants to apply for another loan.
The legislature is also working on a variety of other policy items and has started to use remote meetings.
Happy Easter
My staff and I remain available to assist you in with any questions or concerns you may have. As a Minority Leader, I receive emails from across the state, so please be sure to include your name and address when you contact my office so we can make sure to prioritize Lakeville constituents.
Stay well and enjoy the blessing of family, Easter, and Passover during this season of faith.
Jon Koznick
Assistant Minority Leader
State Representative, Lakeville, 58A