Starting today, Tuesday, June 23rd, The Minnesota Department of Employment and Economic Development (DEED) began accepting applications for $10,000 grants to Minnesota owned and operated businesses that can demonstrate financial hardship due to the pandemic. The Program was approved by the Minnesota Legislature and signed into law by Governor Walz on Tuesday, June 16th, allocating $60.3 million in awards.
The application process will run for 10 days through July 2nd, and recipients will be selected randomly through a computer-generated lottery. Grant funds shall be used for working capital to support payroll, rent, mortgage payments, utilities and other similar expenses incurred since March 1st, 2020, in the regular course of business. No repayment of the awards is required.
Please visit the DEED website for further details on eligibility terms, the application process, and a comprehensive FAQ section. The following is a high-level summary of important information for interested business owners:
- Private for-profit Minnesota business (with a physical location in the state, and majority-owned by a Minnesota resident)
- Employ 50 or fewer full-time workers
- Be able to demonstrate financial hardship as a result of the Covid-19 outbreak
- Fully online, and available from Tuesday, June 23rd through Thursday, July 2nd at 5:00 p.m.
- No attachments or documentation required – borrowers will want to prepare a narrative regarding financial hardship stemming from the Covid-19 outbreak or limitations from state executive orders
- Am I eligible if I received a PPP loan or EIDL loan?
- I own more than one business that is eligible. May I submit more than one application?
No. Only one application per business owner, regardless of the number of businesses eligible.
- When will I know if I have been awarded a grant?
The target timeline is Mid-July. Recipients will receive communication from MN DEED. Please note – if selected for an award, the Program administrator may ask for follow up documentation that verifies eligibility (i.e. sales tax reports, payroll filings, point of sale reports, etc.).
- My business address is my home. Am I eligible?
No, unless your business is a licensed childcare provider. We believe this excludes many self-employed businesses without a physical office location but suggest applying if uncertain given the swift roll-out of this Program.
Myslajek Kemp & Spencer, Ltd. is happy to assist with any questions regarding this unique, local government assistance program for our community and Minnesota based clients. Contact your MKS professional or Erik Ordal (Erik.Ordal@myslajek.com) and make sure to complete the application by July 2nd.