Friends and Neighbors,
Your participation in the 2020 Census is greatly needed this year. The end count will guide the distribution of billions of dollars to Minnesota communities across the state, determine the number of elected representatives Minnesota receives, and it will provide necessary data to Minnesota policymakers to help them make legislative decisions. We can lose out on as much as $28,000 per Minnesotan in federal funding if we under-count.
As of April 1, the U.S. Census Bureau will have contacted every household in the country, whether by sending a letter by mail or hand-delivering a census packet. It’s part of a once-a-decade tradition of counting every person living here. Minnesota currently leads the nation in responses, so let’s keep it up!
It’s been 10 years since we’ve done one of these, so it’s time for a reminder: What is the census, and why is it so important? For more information, visit https://mn.gov/admin/2020-census/.
Unemployment
Many people in our community have lost their jobs through no fault of their own. I’ve received many questions from concerned, self-employed constituents, and we are starting to get some answers. Benefits and relief programs are being made available to these individuals for the first time through Minnesota’s Unemployment Insurance Program, however those programs still need to be set up through the Department of Employment and Economic Development (DEED).
Not all businesses are the same, so DEED is providing this guide to help small businesses quickly see which programs might be right for their situation.
SBA Economic Injury Disaster Loan (EIDL)
Low interest, long term Economic Injury Disaster Loans for up to $2 million: The first payment is deferred for 12 months. The application has been simplified and can be completed 100% online through our improved web portal at www.sba.gov/disaster. These loans may be used to pay fixed debts, payroll, accounts payable and other bills that can’t be paid because of the disaster’s impact. The interest rate is 3.75% for small businesses. The interest rate for non-profits is 2.75% and the loans can be extended over 30 years.
SBA Paycheck Protection Program (PPP)
The SBA PPP is a new federal $350 billion loan program at SBA for small businesses, self-employed people, and gig workers to help them from going under due to the COVID-19 pandemic. If employers maintain payroll, the loans would be forgiven.
Pandemic Unemployment Assistance Program
Congress authorized a new Pandemic Unemployment Assistance program that covers those who do not qualify for regular Unemployment Insurance benefits, such as independent contractors and self-employed people. The program was authorized but must be created by the states, so Minnesota must build out this program before it can be implemented. More information will be available soon, however it could be several weeks before payments begin.
Minnesota Small Business Emergency Loan Program
Minnesota Small Business Emergency Loans are made through an approved lender – you can find FAQs, application materials and lenderson the DEED website. These loans are for $2,500 to $35,000 and at a 0% interest rate. There is a total of $30 million available for this program.
Minnesota Small Business Loan Guarantee Program
This program provides a 80% loan guarantee for loans up to $250,000 made by a qualified economic development lender within this program. Details for business are not yet on DEED’s website but DEED and agency partners are reaching out to lenders to make them aware of this new program – look for more details soon. This program is intended to incent the private market to make loans to small businesses and provides the guarantee for those loan dollars. The state is providing a loan guarantee of $10 million which is likely to leverage between $20 and $25 million in lending by private banks.
Unemployment Insurance Shared Work Program
The Shared Work program offers an alternative to layoffs for employers facing a temporary downturn in business. Administered by DEED’s Unemployment Insurance Division, the program allows employers to divide available hours of work among a group of employees instead of implementing a full layoff. These employees may then receive partial unemployment insurance benefits while working reduced hours. The purpose of Shared Work is to avoid a layoff, not to subsidize wages.
If you have issues with your unemployment insurance application, or questions about whether your business is eligible for a program, please contact DEED directly using the resources available on their website.
State of the State Address
Governor Walz will deliver his State of the State address this Sunday evening, April 5th from the Governor’s Residence, beginning at 7:00 p.m. You can watch on YouTube Live in addition to radio and television broadcasts.
If you have any questions or wish to unsubscribe from this Newsletter please feel free to contact my office at 651-296-2556 or by email at sen.jerry.newton@senate.mn.
Stay home and stay safe,
Jerry Newton
State Senator
District 37