The Minnesota Legislature on Friday voted to give $62.5 million to small businesses battered by the COVID-19 pandemic and government-mandated closures.
If Gov. Tim Walz signs House File 5, it will appropriate $60 million from the federal coronavirus relief fund and $2.5 million from the loan guarantee trust fund, split between businesses in Greater Minnesota and metropolitan areas that employ 50 or fewer full-time workers.
“As we begin the process of slowly and safely reopening businesses, it’s important that assistance is provided to the smallest of the small that were affected by the ongoing pandemic,” Rep. Tim Mahoney, D-St. Paul, said in a statement.
Mahoney estimated the bill would help about 7,500 businesses.
Under the bill, grant recipients can receive up to $10,000 if they’re permanently in Minnesota, are owned by a permanent resident, show financial harm from COVID-19, and are in good standing with the Secretary of State’s office and the Department of Revenue.
Grants will be awarded by lottery and are explicitly for payroll, rent and mortgage payments, and other regular business expenses from March 1, 2020.
The total amount is earmarked for the following:
- $18 million to businesses that employ six or fewer workers
- $10 million to minority-owned businesses
- $2.5 million to veteran-owned businesses
- $2.5 million to women-owned businesses
- $2.5 million to an ethnic indoor food market
Businesses that received prior COVID-19 funds aren’t eligible to receive money from this round.
The Legislature agreed on sending relief to small businesses but is divided on whether Walz should keep his emergency powers.
The GOP-led Senate voted 38-29 to end Walz’s emergency powers. Three Democrats sided with Republicans, although one said her vote was an error.
“It’s time to end the executive orders and let business and life open back up,” Senate Majority Leader Paul Gazelka, R-East Gull Lake, said in a statement.
“I supported the Governor back in March getting prepared just in case something happens,” Gazelka said. “But the ‘just in case’ didn’t happen. We all know the value of social distancing and I have faith the people of Minnesota will continue acting safe, even without the government telling us to.”
But the Democrat-controlled House voted 73-61 to preserve Walz’s powers.
Lawmakers need a majority vote from both chambers to end the peacetime emergency, which now lasts through July 13.
Democrats defend Walz’s emergency powers because they grant $50 million of federal funding per month, fend off evictions, and allow for swift action if needed while the Legislature is out of session.
Republicans argue that 80 percent of the state’s 1,283 COVID-19 deaths occurred in long-term care facilities, which should be prioritized instead of using executive orders to restrict businesses’ revenue when the state’s staring at a projected $2.4 billion budget deficit for this biennium.
The Legislature will return next week to possibly pass a billion-dollar bonding bill, police reform, and send $841 million to local governments for COVID-related expenses.
