Minnesota’s 92nd legislative session ended their 2021 regular session on May 17th without a budget. The Governor and Legislative leaders instead released a budget framework with a target of $52 billion for the next biennium. Lawmakers worked for four weeks on final details largely outside of the public eye until they convened a special session on June 14th. All spending bills were passed and signed into law by June 31st.
The need for a special session was largely due to a late infusion of funding from the American Rescue Plan Act (ARPA) that was signed into law by President Biden on March 11, 2021. Roughly $8.5 billion was allocated in the bill to the State of Minnesota for various programs.
A final budget of $52 billion was signed into law on June 31, 2021. This biennial budget is an increase of approximately $1.3 billion over the previous budget – much of that one-time funding from ARPA. Included in the bill are direct tax cuts of $644 million to people who lost jobs and employers who kept people working during the pandemic.
Paycheck Protection Program
The final tax bill included full conformity to federal tax law with regards to the Paycheck Protection Program at a cost of roughly $375 million in fiscal year 2022. Businesses and organizations that received PPP loans will not be subject to either federal or state income tax on the amount of the loan received.
Continue reading “2021 (Special) Legislative Session Recap”
Today, Governor Tim Walz announced Executive Order 20-96 (click the link for full details) , taking effect on Friday, November 13 at 10 p.m. (CST). The announcement amends Executive Order 20-74 with specific steps for social gatherings and guidelines for bars and restaurants.
In general, the order calls for the following measures:
- Limits all social gatherings (indoor or outdoor) to 10 people and all social gatherings involving members of more than 3 households (regardless of the size of the gathering).
- Bars, restaurants, food courts, cafes, coffeehouses, taverns, brewery taprooms, wineries, golf courses and clubs, dining clubs, tobacco shops, and other places of public accommodation offering food, beverages, tobacco products for on-premises consumption, are required to close by 10 p.m. every day, starting Friday, November 13. Delivery service, or curbside pick up options already in place for certain industries in this group is still allowed.
- Venues that host celebrations, receptions, and gatherings will be capped at 50 people, effective November 27 at 10 p.m.
- No bar seating service.
- This figure is reduced to 25 people on December 11 at 10 p.m.
The Governor also announced a proposal for $10 million in additional funding to businesses that have already applied for relief through the Small Business Relief Grant Program. This program provides $10,000 grants to impacted businesses.
The Minnesota Department of Employment and Economic Development (DEED) has announced that the Minnesota Small Business Relief Grants Program – which was approved by the Minnesota Legislature last week and signed by Governor Tim Walz on Tuesday – will begin accepting applications next week. Continue reading “Small Business Relief Grants Program to Begin Accepting Applications on June 23”
The US House and Senate have passed the Paycheck Protection Program Flexibility Act. This bill grants more time for PPP loan recipients to spend the funds and reduces the amount of funds that must be spent on payroll and still qualify for forgiveness of the loans. President Trump is expected to sign the bill. Continue reading “Congress Passes Bill Providing Paycheck Protection Program Flexibility”
Join your colleagues and our regional legislators on May 22 at 8 am as Greater Mankato Growth hosts a virtual discussion to recap the 2020 legislative session.
With COVID-19 still significantly impacting businesses, our panel of legislators will provide an update on their efforts to support our state at this time. Attendees will also have an opportunity for Q&A so you can engage directly with our legislators on the issues most important to you.
This event is free. Once registered, you will be emailed a link to access the webinar, which will also be recorded and posted on the event page when complete. Continue reading “Legislative Session Recap Virtual Discussion”
Governor Tim Walz on April 23 announced his strategy for how his administration will approach planning for the development of a comprehensive framework that will reopen Minnesota’s economy in phases.
The first step in that process is the issuance of Executive Order 20-40 which begins the process of safely returning Minnesotans to work, starting with workers in non-customer facing industrial and office-based businesses who cannot work from home. Guidance on what businesses are allowed to return to work under EO 20-40 can be found here. In addition, the state has created a comprehensive and detailed website for businesses to reference on safely returning to work, including FAQs.
In general, the order: Continue reading “Partial Return to Work for Some Non-Critical Sectors Announced”
If you are an independent contractor or self-employed, you may be eligible for Paycheck Protection Program (PPP) loans/grants, SBA’s Economic Injury Disaster Loans (EIDL), and/or Unemployment Compensation for losses of income related to the coronavirus pandemic. While the PPP and EIDL programs are currently out of money, Congress is actively working to provide additional funds. This great guide to the CARES Act for Self-employed and Independent Contractors from the US Chamber of Commerce will ensure you have the information you need to take advantage of these federal programs.
Both the federal government and Minnesota Legislature have recently passed legislation that will speed critical funds to Minnesota businesses and families. With new legislation comes questions on what the changes mean for Minnesota businesses. The Minnesota Chamber of Commerce recorded a webinar to answer your questions on both the state and federal COVID-19 relief packages. Patrick Baker on the GMG team is also well-versed in these new state/federal programs and is happy to walk any business through them. You can contact him at 507-385-6657 or email@example.com. Continue reading “Webinar: How State and Federal Legislation Can Help Your Business”
On March 27, President Trump signed into law the Coronavirus Aid, Relief, and Economic Security (CARES) Act. This bill will provides significant support to businesses. The signature piece of the new law is the “Paycheck Protection Program” which will provide $350 billion to help small businesses keep workers employed amid COVID-19 and economic downturn. This new program provides 100% federally guaranteed loans to small businesses who maintain their payroll during this emergency. Importantly, these loans may be forgiven if borrowers maintain their payrolls during the crisis or restore their payrolls afterward.
UPDATED: Businesses will be able to apply for these forgivable loans starting April 3rd through most all local banks. The U.S. Treasury Department has issued preliminary guidance that you can view HERE. You can view the fully Treasury website on the program here.
In addition, our friends at the U.S. Chamber of Commerce have prepared an easy-to-understand checklist to guide businesses and self-employed individuals through this new program as they prepare to file for a loan.