COVID-19 RESOURCES FOR MINNESOTA SMALL BUSINESS OWNERS
Minnesota businesses are facing a myriad of uncertainties at this time due to the COVID-19 pandemic. Thankfully, there are resources for employers in Minnesota to help with this difficult period.
Taking steps to identify and address potential risks as a business owner is important. At Wilkerson & Hegna, we stay on top of the changing legal landscape, which often has implications for our clients, their transactions, and their businesses. While the COVID-19 situation is rapidly evolving each day, below are a few resources that may be available to small businesses. For more information on how to address the challenges brought on by COVID-19, contact the attorneys at Wilkerson & Hegna to help.
U.S. Small Business Administration Loans
One way Minnesota businesses may be able to get assistance is through low interest loans from the U.S. Small Business Administration (SBA). Governor Walz has requested an Economic Injury Disaster Loan declaration, clearing the way for businesses to apply for loans to pay fixed debts, payroll, accounts payable and other bills that can’t be paid because of the disaster’s impact. The SBA loan application link will be posted to the Minnesota Employment and Economic Development website as soon as it becomes available.
Minnesota’s Unemployment Insurance Program Can Help Businesses Avoid Layoffs
The Shared Work Program is designed to help you reduce costs without losing your valued employees. If your business reduces hours by 50% or less, the Shared Work Program can help defray some of your employees’ lost wages.
Maintaining your current workforce will help you avoid the expense of recruiting, hiring, and training new workers. The Shared Work Program will also allow you to resume full operations quickly when business conditions improve.
To participate in Shared Work you must meet the following qualifications: (i) your unemployment insurance tax account balance must be paid in full including interest, fees, and penalties; (ii) your workforce cannot be seasonal, temporary, or work on an intermittent basis; and (iii) the owner/officer information on your unemployment insurance employer account must be complete and up to date.
For more information and requirements, go to: https://www.uimn.org/employers/alternative-layoff/index.jsp
Sales Tax Grace Periods for Certain Businesses
The Minnesota Department of revenue is giving restaurants, bars and other hospitality businesses impacted by the temporary closure order a 30-day grace period in paying sales and use tax. During this time the Minnesota department of Revenue will not assess penalties or interest. This means that affected businesses with a monthly Sales and Use Tax payment due March 20, 2020 will have until April 20, 2020 to make that payment. However, businesses are still required to file their returns by the usual deadline. Find out more at: https://www.revenue.state.mn.us/sales-and-use-tax