ST PAUL, Minn. — Minnesota lawmakers say they can't wait for the federal government to step in with more help for businesses hit by the pandemic and shutdowns that have been imposed in response to it.
Senate Republicans and House Democrats are nailing down the details of a $216 million aid package for small and medium-sized businesses, with special attention to those in the hospitality industry.
They're hoping they can hear the business assistance bill during Monday's scheduled special session, rather than waiting until the 2021 regular session begins in January.
The proposal calls for the following:
- $100 million in direct relief for restaurants, bars, gyms and similar
- $102 million for counties to distribute to local businesses
- $14 million for movie theaters, convention centers
The payments would range from $10,000 to $45,000 depending on the number of employees.
Rep. Dave Baker, a Willmar Republican, said the current round of shutdowns hit at a time when many Minnesotans are fearful of leaving their homes, making it tougher for restaurants to maintain curbside business.
"This time there is a different tone. We need to get this out now and quickly. We need to get them open as quickly as safely as we can," Rep. Baker Thursday during a media briefing.
"We worked with Democrats. This was a good bipartisan effort,"
If adopted by the legislature some of the money could start to flow by the end of the month, giving a boost to an industry that has taken a hit as Gov. Tim Walz limited gatherings in an effort to slow community spread of the coronavirus and prevent hospitals from being overwhelmed by new patients.
What is still not settled is whether the state should extend unemployment benefits for furloughed workers. The federal CARES Act jobless benefits expire Dec. 26, with no guarantee that Congress will pass a new act before then.
"There is no way we are going to provide business relief without including the workers who have been laid off from those businesses," Rep. Ryan Winkler, the DFL House Majority Leader, told KARE.
"Minnesota families are counting on unemployment insurance, and there’s no reason we shouldn’t do this for the full 13 weeks."
House Democrats have proposed a 13-week extension of benefits, which would last until April 24. If Congress extends federal benefits, the state extension wouldn't be made available to laid off workers.
Senate Republicans say they support a shorter unemployment insurance extension, preferring to wait and see what happens on the unemployment front in Washington D.C. GOP lawmakers are wary because businesses must eventually make higher contributions to the unemployment insurance program in future years to replenish the depleted U.I. trust fund.
The state, like many other states, has already had to borrow from the federal unemployment trust fund to bolster the state's pool of money to pay benefits during the pandemic.
Members of the Minneapolis delegation are also seeking $167 million in aid to businesses destroyed and damaged during the riots that followed George Floyd's death in police custody last May. The money, if approved, would flow through community development agencies.
Senate Republicans have supported the idea of sending aid directly to those businesses, but have opposed bills that would route the dollars through city government in St. Paul and Minneapolis.