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.

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: 

  • 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

 

  • 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
  • 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)

PAYMENT AMOUNT

1 to 20

$15,000

21 to 100

$25,000

101 to 300

$35,000

301 or more

$45,000

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.

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. Eligible businesses will be notified though their e-Services account by Dec. 31. 
  3. 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.

More Information

The Revenue Department will update its website with the latest payment and program information