UPDATED: January 5, 2021
HENNEPIN COUNTY SMALL BUSINESS & NONPROFIT RELIEF FUNDING

NOW ACCEPTING APPLICATIONS

APPLICATIONS DUE: January 14th, 2021 by Noon

A total of $24.6 million is available. This funding was given to Hennepin County by the State of Minnesota to support businesses and nonprofits impacted by the pandemic and related state restrictions, including Executive Order No. 20-99.

ELIGIBILITY
Eligible applicants include:

• For-profit businesses, including owner-operated franchise businesses
• Nonprofits that earn revenue similar to businesses and were impacted by Executive Order 20-99 Section 7ciii. Examples include nonprofit cafes or coffeeshops; nonprofit theaters, museums, music or arts organizations that primarily earn revenue through ticket sales; nonprofit fitness centers that earn revenue by membership dues or other fee-for-service models.
• Home-based or mobile businesses/nonprofits with one or more W-2 employee in addition to an owner
• Businesses that opened during the pandemic and were required to close or partially close by Executive Order 20-99 Section 7ciii

Applicants listed above must meet all criteria below:

• Have a permanent location in Hennepin County
• Have no more than 150 employees per location as of March 2020
• Be registered with no current tax liens on record with the Minnesota Secretary of State
• Have a COVID-19 Preparedness Plan in effect
• Be able to provide documentation of revenue of at least $10,000 in 2020 and revenue impacts
• Certify in good faith that all documentation submitted is accurate and that any misrepresentations or fraudulent information will require funds to be returned
• Be impacted by an executive order to reduce the spread of COVID-19, and be included in one of the categories below:
  • Businesses and nonprofits required to close or partially close by Executive Order 20-99 Section 7ciii, including restaurants, bars, breweries, distilleries, caterers, music and other indoor entertainment venues, performance venues, gyms, fitness studios or other indoor recreation venues, or businesses that primarily derive income from sales of goods and services to entities directly affected by EO 20-99.
  • Businesses impacted by prior executive orders that reduced capacity and whose revenue decreased by at least 30%, including customer-facing businesses such as personal care and salon businesses; retail businesses that sell household goods or services; other customer-facing businesses that rely on in-person transactions or services, such as dry cleaners, house cleaning businesses. Business types not explicitly and directly impacted by executive order must provide documentation of 30% decrease in year-over-year revenue (April-September).

Businesses that have received assistance in the past from federal, state, county or other local programs are eligible for this funding for eligible expenses that were not previously reimbursed.


ELIGIBLE USES
Applicants must document eligible expenses incurred during the pandemic that are equal to or greater than the grant amount requested and have not already been reimbursed by any other local, state, or federal funding sources.

Eligible expenses include:

• Payroll
  
• Commercial rent/mortgage payments
• Property taxes
• Utilities
• Supplier payments
• Legal fees
• Personal protective equipment
• Repairs to existing building(s) and equipment necessary to comply with public health guidance

Application Guidelines and Apply

Application Tutorial Step-By-Step Video

FAQs

Application Questions - contact sbrtechsupport@hennepin.us

MN STATE COVID-19 BUSINESS RELIEF PAYMENTS INFORMATION

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.

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

Eligible Businesses 
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 if they meet the other program requirements: 

• 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

Program Requirements
The Department of Revenue will send payments 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 monthly or quarterly Sales Tax returns in 2019 and 2020
• As of November 1, 2020, had filed all sales tax returns due through September 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 Unemployment Insurance data. The amount depends on their average number of employees for the period of November 1, 2019 - January 31, 2020. The payments are considered taxable income.

EMPLOYEES (FULL- AND PART-TIME)
1 to 20
21 to 100
101 to 300
301 or more

PAYMENT AMOUNT
$15,000
$25,000
$35,000
$45,000

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

Payment Process
-The Minnesota Department of Revenue will use current tax and unemployment records to determine what businesses are eligible and the amount of their aid payment. 
-The Minnesota Department of Revenue will notify eligible businesses through their e-Services account by December 31, 2020. 
-The Minnesota Department of Revenue will mail payments 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.

More Information
The latest payment and program information can be found here.

Other programs included in Minnesota’s small business relief package signed into law December 16 are:

• Minnesota Convention Center Relief Grant Program – This temporary program was established to provide economic relief for convention centers adversely affected by the COVID-19 pandemic. This program will make grants of up to $500,000 to eligible convention centers located in Minnesota. DEED will administer this program. All convention centers interested in receiving a relief grant must submit a completed application. Applications will be available on January 5th.
• Minnesota Movie Theater Relief Grant Program – This temporary program was established to provide economic relief for movie theaters adversely affected by the COVID-19 pandemic. This program will make grants of up to $150,000 to eligible movie theaters located in Minnesota. DEED will administer this program. All movie theaters interested in receiving a relief grant must submit a completed application. Applications will be available on January 5th.

FUNDING - LOANS AND GRANTS

• Lake Minnetonka Business Grant
• U.S. Small Business Administration (SBA) guidance for employers – Links to information on small business products and loans, guidance on access to capital and the local assistance directory. 
• U.S. Small Business Administration disaster loan application – Minnesota businesses now eligible as of Saturday, March 21.
  • Forms to Fill Out FIRST. Here's a list of documents you'll need to provide to complete the application: 
  • SBA Form 5 or SBA Form 5C for sole proprietorships – SBA loan application 
  • IRS Form 4506T – Tax Information Authorization for the applicant, principals and affiliates.
  • Complete copies of the most recent Federal Income Tax Return. 
  • SBA Form 2202 – Schedule of Liabilities.
  • SBA Form 413 – Personal Financial Statement.
  • SBA Form 1368 – Monthly sales figures 
• SBA Guide to Economic Injury Disaster Loans – download forms to apply, and more.
  • Have questions about these loans, please watch this video to answer some FAQs.
• Congressional summary of CARES Act for Small Businesses
• Coronavirus emergency loans small business guide and checklist from the U.S. Chamber of Commerce
• SBA Economic Injury Disaster Loan Program (EIDL) guide from the U.S. Chamber of Commerce
• Guide to the Employee Retention Tax Credit for COVID-19 impacted employers from the U.S. Chamber of Commerce
• How the U.S. Treasury Department is taking action on COVID-19
• Tax Savings Opportunities from the CARES Act by CliftonLarsonAllen
• DEED guide for small businesses on how to navigate state and federal COVID-19 assistance
• Paycheck Protection Program (PPP) – SBA loan that helps businesses keep their workforce employed during the Coronavirus (COVID-19) crisis.
  • FAQ from U.S. Department of Treasury Paycheck Protection Program
  • Guide to PPP Loan Forgiveness from the U.S Chamber of Commerce
  • PPP Loan Forgiveness: A Step-By-Step Explainer video from the U.S. Chamber of Commerce
• COVID-19 Federal Rural Resource Guide from the U.S. Department of Agriculture
• Guide to the Main Street Lending Program from the U.S. Chamber of Commerce
• Federal Reserve Board expands Main Street Lending Program: Allows more small and medium-sized businesses to be able to receive support
•  December 21 COVID-19 federal relief bill small business summary from the Small Business Committee
•  Guide to Small Business COVID-19 Emergency Loans - What small businesses need to know about the new pandemic relief package – Changes to PPP and more from the U.S. Chamber of Commerce
•  What does the federal relief package mean for Minnesota unemployment insurance - FAQ from DEED
  

Summary of 501(c)(6) Eligibility in Pandemic Relief Package Expansion of PPP from the U.S. Chamber of Commerce
The final pandemic relief package restarts the Paycheck Protection Program (PPP) and expands PPP eligibility to include 501(c)(6)s. The language begins on page 2102 (in the PDF) and can be found here. The authority to make new PPP loans will terminate on March 31, 2021. We expect the pandemic relief bill to become law this week.
501(c)(6) organizations are eligible to receive a PPP loan provided:

They are not a professional sports league or organized for the purpose of promoting or participating in a political campaign (Note: this will not impact chambers of commerce or trade associations);
They do not employ more than 300 employees;
They do not receive more than 15% of their receipts from lobbying activities;
Lobbying activities do not compromise more than 15% of the organization’s total activities; and
The cost of the lobbying activities of the organization did not exceed $1,000,000 during the most recent tax year that ended prior to February 15, 2020.
If an organization fails any of these tests they are NOT eligible to receive a PPP loan.
Similar rules apply to Destination Marketing Organizations.
Lobbying activities are not defined in the section. The Small Business Administration may provide a definition or guidance. Congressional staff have used information available in the 990 tax form when discussing the impact of the 15% lobbying activities limitation.  Specifically, staff have compared the lobbying expenses reported on schedule C, Part III-B, Line 2 with the total expenses reported for the year (Page 1, line 18).  (Note that these lines may be different if you are using a 990 form vs. 990EZ.)
Absent further guidance, organizations may wish to analyze their most recent 990 to determine whether they may be eligible to apply for a PPP loan and may wish to proceed with their lender if they believe they do qualify.
The bill also expands allowable uses for PPP funds and simplifies the loan process.  We will be providing separate information on the other PPP changes.