St. Paul, MN - Today, the Minnesota House of Representatives approved $62.5 million in grants for small businesses impacted by the COVID-19 pandemic. Being the first day of the special session, this legislation was part of a bipartisan and bicameral package of bills slated to be passed early on. State Representative Dan Wolgamott (DFL - St. Cloud) voted in favor of the legislation.
“COVID-19 continues to impact our communities, but as we start to safely reopen our local businesses, we need to support those that have been hit the hardest by this global pandemic,” said Rep. Wolgamott. “Some of the smallest businesses in St. Cloud have been operating at a limited capacity or closed entirely for months, and these grants will serve as a resource for those that may have otherwise been unable to access the resources of a larger company. Of the $62.5 million, $10 million will be carved out for minority-owned businesses, and $2.5 million for cultural malls. These businesses are the livelihoods of our neighbors and the backbone of our community, and I was proud to cast my vote for this bill.”
The bill includes $60 million from the federal CARES Act, and $2.5 million from the Minnesota Department of Employment and Economic Development’s Emergency Loan Program. The focus of these funds will be on Minnesota’s smallest businesses, many of which are not as well-connected with private banks, and that were required to operate at 50% capacity or less as of May 18. The funds will be evenly split in their allocation to Greater Minnesota and Metro-area businesses.
Under the bill, small businesses with 50 or fewer employees can receive grants up to $10,000 each. To be eligible, the business must meet the following requirements:
- Have a permanent physical location in Minnesota,
- Be owned by a permanent resident of MN,
- Be in good standing with the Sec. of State’s office and the Dept. of Revenue as of March 1, 2020, and
- Demonstrate financial hardship as a result of the COVID-19 pandemic.
In contrast to existing programs designed to help business during the pandemic, grants will be awarded by lottery.
The bill is available here. Video of today’s floor vote is available here.
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