House, Senate Strike Apparent Deal on $216 Million in Business Relief, Not on Unemployment Benefits

ST. PAUL, Minn. (FOX 9) – Minnesota lawmakers have struck a deal to send $216 million in cash relief to businesses hit by the coronavirus pandemic and mandatory shutdowns, but there’s no agreement to extend unemployment benefits to laid-off workers.

The Legislature is set to convene for a special session Monday, and lawmakers have been racing to reach an agreement. It’s unclear whether Democrats who control the House will be willing to pass a bill that doesn’t include more unemployment benefits.

So far, the deal on business relief includes:

• $100 million in cash grants through the state Revenue Department to businesses affected by forced closures and seen their revenue dip by 30 percent or more
  • 1-20 employees: $15,000
  • 21-100 employees: $25,000
  • 101-300 employees: $35,000
  • 300-plus employees: $45,000

• $14 million in cash grants through the state Economic Development department to movie theaters and large convention centers that have seen business dip by 30 percent or more
• $102.5 million in cash grants through a program run by each county, targeted for businesses that weren’t shut down but were affected, like restaurant suppliers or cleaning companies

State Sen. Eric Pratt, who was among the negotiators on the package, said the first round of relief, $100 million through the Revenue department, could be sent out later this month.

Lawmakers have hit a wall in negotiations over unemployment benefits.

Senate Republicans want to cap an extension at $200 million from Minnesota’s unemployment trust fund, which would be enough for a 5-week extension.

Democrats and Gov. Tim Walz favor a 13-week extension, something House GOP Leader Kurt Daudt said his caucus would be willing to do.

Hospitality Minnesota, the state’s trade group representing restaurants, hotels, and the rest of the hospitality industry, said it supports the deal lawmakers agreed to Thursday but raised concerns that hotel properties would not receive immediate relief.

The Minnesota Chamber of Commerce put forward a series of requests, including tax relief and the waiving of regulatory fees.