Here is some news & resources for employers during these trying times. As we become aware of additional items we’ll post them here.
PAYCHECK PROTECTION PROGRAM (PPP) LOAN FORGIVNESS INFO & APPLICATION (NEW)
Today, the Small Business Administration (SBA), in consultation with the Department of the Treasury, released the Paycheck Protection Program (PPP) Loan Forgiveness Application and detailed instructions for the application.
The form and instructions inform borrowers how to apply for forgiveness of their PPP loans, consistent with the Coronavirus Aid, Relief, and Economic Security Act (CARES Act). SBA will also soon issue regulations and guidance to further assist borrowers as they complete their applications, and to provide lenders with guidance on their responsibilities.
The form and instructions include several measures to reduce compliance burdens and simplify the process for borrowers, including:
- Options for borrowers to calculate payroll costs using an “alternative payroll covered period” that aligns with borrowers’ regular payroll cycle
- Flexibility to include eligible payroll and non-payroll expenses paid or incurred during the eight-week period after receiving their PPP loan.
- Step-by-step instructions on how to perform the calculations required by the CARES Act to confirm eligibility for loan forgiveness.
- Borrower-friendly implementation of statutory exemptions from loan forgiveness reduction based on rehiring by June 30.
- Addition of a new exemption from the loan forgiveness reduction for borrowers who have made a good-faith, written offer to rehire workers that was declined.
The PPP was created by the CARES Act to provide forgivable loans to eligible small businesses to keep American workers on the payroll during the COVID-19 pandemic. The documents released today will help small businesses seek forgiveness at the conclusion of the eight week covered period, which begins with the disbursement of their loans.
Click here to view the application and instructions.
COVID-19 Preparedness Plan template, instructions available
Gov. Tim Walz’s recent Executive Orders require non-critical businesses that have now been reopened to establish a COVID-19 Preparedness Plan. The completed business preparedness plan is not required to submitted to DLI for approval, but needs to be made available upon request.
Template, instructions and checklist guidelines for creating a COVID-19 Preparedness Plan are available at www.dli.mn.gov/updates.
SMALL BUSINESS ADMINISTRATION INFO
Be sure to check out the resources at the Small Business Administration.
GUIDE FOR SMALL BUSINESSES
This just came out from the Minnesota Department of Employment & Economic Development. Lot’s of very good information for small businesses: A Guide for Small Businesses Who Need Help
SMALL BUSINESS OWNERS GUIDE TO THE CARES ACT
Important info for small businesses:
Small Business Owners Guide to the CARES Act
SUMMARY OF FEDERAL STIMULUS BILL
A summary of the Federal Economic Stimulus Bill can be found here: Summary of Federal Economic Stimulus Bill
UPDATES FOR WEDNESDAY, MARCH 25th
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Governor Walz Executive Order Directing Minnesotans to Stay at Home
Beginning on Friday, March 27, 2020 at 11:59 pm through Friday, April 10, 2020 at 5 pm, all persons currently living in the State of Minnesota are ordered to stay at home or in their place of residence except to engage in the Activities and Critical Sector Work.
Essential businesses that are allowed to stay open are listed in the Governor’s Executive Order, which can be found here: Walz-Executive-Order-20-20-Stay-at-Home
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DEED is in the process of putting together a Small Business Emergency Loan Program. This should roll out in a few days. In the meantime, businesses can review the terms and eligibility criteria here: https://mn.gov/deed/business/financing-business/deed-programs/peacetime
UPDATES FOR TUESDAY, MARCH 24th
DEED will be creating a Small Business Emergency Loan Program by making available $30 million from special revenue funds. These dollars will be used by DEED’s lender network to make loans of between $2,500 and $35,000 for qualifying small businesses. The loans will be 50% forgivable, and offered at a 0% interest rate. These emergency loans will be made by an existing network of lenders DEED works with across the state. DEED expects loan applications will available later this week through our lender network. Notably, we are asking all small business who need loans to apply with the SBA as well, to ensure we’re taking advantage of all the federal dollars available for Minnesota businesses.
Applications will open up later this week. For more information on the specifics, please visit our COVID-19 hub for businesses.
MINNESOTA SMALL BUSINESSES NOW ELIGIBLE FOR SBA ECONOMIC INJURY DISASTER LOAN PROGRAM
Minnesota small businesses are now eligible for the SBA Economic Injury Disaster Loan Program and can apply for a loan on our website at SBA.gov/disaster.
• This program can provide low-interest loans of up to $2 million to small businesses and private non-profits.
• These loans may be used to pay fixed debts, payroll, accounts payable and other bills.
• The current interest rate is 3.75% for small businesses. The non-profit rate is 2.75%.
• These loans have long-term repayment options, up to a maximum of 30 years.
• Need help filling out the application? Access these step-by-step instructions
UPDATES FOR MONDAY, MARCH 23rd
In a crisis, misinformation can spread quickly as people are thirsty for news and rumors spread fast. We need to counter that by letting people know exactly what’s going on, and what resources are available for help. Here are some links to share with the business and civic community:
• If you’re a business or a worker who has general questions about how COVID-10 affects business, consult our COVID-19 Information page.
• If you want to know what state government has to offer businesses so far, check out our blog on Helping Minnesota Businesses during COVID-19.
• If you’re a small business who needs to take out a disaster loan from the SBA, learn how to apply here: MN Small businesses NOW eligible for SBA disaster loans
• If you’re a business or a worker who has questions about how unemployment insurance works, consult our Unemployment Insurance FAQs.
• If you’re going to apply for unemployment benefits, APPLY ONLINE. Phone lines are jammed and have long wait times. The URL is www.uimn.org
• For information on delaying your sales and use tax payments see the MN Department of Revenue Sales and Use Tax page.
RESOURCES FOR EMPLOYERS: COVID-19
Shared Work – alternative to layoff :
https://uimn.org/employers/alternative-layoff/
Email: [email protected]
Minnesota Unemployment Insurance (UI) Program (for applicants and employers):
https://www.uimn.org/
U.S. DEPARTMENT OF LABOR ANNOUNCES NEW GUIDANCE ON UNEMPLOYMENT INSURANCE FLEXIBILITIES DURING COVID-19 OUTBREAK
https://www.dol.gov/newsroom/releases/eta/eta20200312-0
Information about unemployment benefits for workers affected by COVID-19:
https://www.uimn.org/applicants/needtoknow/news-updates/covid-19.jsp
UI Information for Employers affected by COVID-19:
https://www.uimn.org/employers/employer-account/news-updates/covid-19.jsp
Pandemic Doesn’t Have to Mean Pandemonium in the Workplace:
https://www.claconnect.com/resources/articles/2020/pandemic-doesnt-have-to-mean-pandemonium-in-the-workplace?utm_campaign=Perspectives&utm_source=hs_email&utm_medium=email&utm_content=84725799&_hsenc=p2ANqtz-9oKMYCIHPieTAvIb6Jr6hUtaqY9duUrLtoRdF9VtNrZNEc7p73mJ5ZtxXQbRzLKH-KYakOFyTWpiyvzmHsKtduRf1iKw&_hsmi=84725799
Health care Insurance:
https://www.uimn.org/applicants/help-support/comm-organizations/healthcare.jsp
Dislocated Worker Program (for permanent layoffs):
https://www.cmjts.org/programs/dislocated-worker/
If you have any questions or need additional information, contact Miles Seppelt, Economic Development Director at (320) 234-4223 or via email at [email protected]
