COVID-19 Relief Package Passed for Minnesota Small Businesses

Under new legislation 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. Governor Tim Walz extended his peacetime emergency powers and lawmakers also passed a targeted financial relief package to help businesses that are suffering due to the COVID-19 pandemic.

Eligible business owners do not need to take any action to receive this aid. The MN Department of Revenue will determine eligibility and payment amounts based on the program requirements that were included in the legislation and outlined below.

Who Is An Eligible Business?

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

What Are the Program Requirements?

Payments will be sent 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.

Employees (Full and Part-time) and Payment Amount:

  • 1 to 20 – $15,000
  • 21 to 100 – $25,000
  • 101 to 300 – $35,000
  • 301 or more – $45,000

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

Payment Process
  1. The state will use current tax and unemployment records to determine what businesses are eligible and the amount of their aid payment.
  2. The state will notify eligible businesses though their e-Services account by December 31, 2020.
  3. Mail payments will be sent 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.
For More Information

For more information, visit the Minnesota Department of Revenue website for additional program details and updates. Contact your Lurie advisor for additional information on State of Minnesota economic or business relief plans and assistance. 

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