A single-source story, regularly updated, on the information NFIB members should be aware
Gov. Walz Executive Order on Unemployment Insurance Benefits
Recently, Governor Walz issued an executive order to provide for immediate unemployment insurance benefits for those laid off due to business shutdowns and reductions related to the coronavirus. The order waives the one week waiting period and laid off workers who qualify for benefits could receive them almost immediately. Importantly, the order retains the current qualification requirements which are approximately $3,000 per year. Soon after the order, over 116,000 laid off workers filed for benefits. Workers who have lost their regular childcare provider and cannot find a substitute and those who have immediate needs that cannot be met due to school district closures also qualify for benefits. Additionally, those who are quarantined due to the virus also qualify.
Importantly, small businesses that have been forced to shut down are now eligible for the full 26 weeks of unemployment insurance benefits. Current law limits them to just five weeks.
The executive order is unprecedented and unemployment insurance benefit extensions have always been passed by the legislature, although we have never experienced this type of a fast-breaking crisis that has caused so many layoffs. The executive order lasts nine months and expires on December 31. The legislature can try to change any emergency executive orders 35 days after they are issued. For more information, CLICK HERE.
SBA Disaster Loans
Businesses may need to consider an SBA Disaster Assistance loan where they can borrow as much as $2 million at a 3.75% rate for 30 years, although businesses should delay for a few days to see if the Congress provides even more generous loans through the coronavirus relief package. To apply for the federal loan, CLICK HERE.
Legislature on Recess
The legislature is taking an unprecedented recess. Legislative leaders mentioned they are available on an on-call basis and may possibly come back to make some votes related to the crisis. But the current unprecedented turn of a events has really lowered expectations for what may occur this year in St. Paul and legislative leaders have talked openly about a very limited session that primarily addresses the coronavirus crisis but also enacts a bonding bill. Possibly some type of small business tax relief could be part of that.
