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 Dec. 16.
Eligible business owners do not need to take any action to receive this aid. The Revenue Department will determine eligibility and payment amounts based on the program requirements that were included in the legislation.
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
Breweries with taprooms
Family wineries with tasting rooms
Distilleries with tasting rooms
Gyms and fitness centers
Firms must be 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
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)
1 to 20
21 to 100
101 to 300
301 or more
Small businesses not in the state’s Unemployment Insurance system will receive $10,000.
Qualifying small businesses not in the state’s Unemployment Insurance system will receive $10,000.
The state will use current tax and unemployment records to determine what businesses are eligible and the amount of their aid payment.
Eligible businesses will be notified though their e-Services account by Dec. 31.
Payments will be mailed to eligible businesses in early-January 2021. They will be sent to the main sales tax account address. Electronic payments are not available for this program.