Small Business: What Are My Relief Options?
The state and federal government recently passed legislation that may provide some much needed dollars to your small business. So what do you need to do? Here's a brief breakdown:
State of Minnesota
-If your business was shut down by the most recent governor's order, you are eligible for a direct payment from the MN Department of Revenue. Your business doesn't have to do anything to receive this money (no application). The State of MN is using your recent sales tax filings and employee count to determine what you will receive, the range is $10,000-$45,000. If your business showed a 30% decrease in revenues then you qualify and the amount of money is based on your employee count.
-The state is sending each county a pot of money. For Steele County this is around $700,000. The county can determine how to best get these dollars into the hands of impacted small businesses. These grants will be open to all businesses that qualify and there will be an application process. We expect more details in the next two weeks.
U.S. Stimulus Package
-Paycheck Protection Program in this bill expands uses including Operations (technology, computers), Supplier Costs and Worker Protection items (PPE, safety items). 60% of the
dollars must still be used on payroll. PPP runs until March 31, 2021. For those who received PPP in the first stimulus plan, you are eligible for a second draw, but must show 25% decrease in revenues, limit to businesses with less than 300 employees and is up to $2M. (*Note: if this is your first time using PPP, the % in revenue decrease is not a requirement)
PPP will again be administered through your local banker, through the SBA and is still first-come, first-serve.
-If you received a portion of the $10,000 EIDL up front grant (no payback) promised in the initial CARES Act, you can apply to receive the remaining amount up to $10k. Applications will be submitted directly through the SBA website. Also new this time around, businesses can use PPP dollars AND get full amount of EIDL.
-Improvements have also been made to the Employee Retention Tax Credits. Up to $10,000 per quarter can be credited (up from $10,000/year), 70% of qualifying payroll can be credited (up from 50%), program extended through June 30, 2021 and this program can be used in conjunction with PPP as long as it’s not for the same expense. Work with your accountant or tax provider.
The Chamber will continue to stay on top of these programs and provide the latest details on when and how your business can access them.
