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COVID-19 Funding – Loans and grants

New From the Minnesota Department of Revenue (July 19, 2021): 

The Minnesota Department of Revenue updated 2020 Minnesota tax forms and instructions to reflect state law changes enacted on July 1, 2021. 

The changes relate to unemployment compensation, Paycheck Protection Program (PPP) loan forgiveness, and other retroactive provisions affecting tax years 2017 to 2020. 

When filing or amending a Minnesota return, be sure to use the most current forms or update your tax software. The Minnesota Department of Revenue will not accept 2020 returns using older forms after August 2, 2021. 

Tax Year 2020
If you filed a 2020 income tax return that included unemployment compensation or PPP loan forgiveness, the Minnesota Department of Revenue will either adjust the return or ask you to amend it.  

  • If the Minnesota Department of Revenue can adjust your return: The Minnesota Department of Revenue will send you a letter describing what the they changed and any refund you may receive as a result. The Minnesota Department of Revenue is committed to adjusting as many returns as they can. 
  • If you need to amend (due to these law changes): Wait until you hear from the Minnesota Department of Revenue before filing an amended return. The Minnesota Department of Revenue will let you know if they can adjust your return or if you need to amend it.
  • If you have not filed a 2020 return or filed for an extension: You may file using the updated forms to claim the recently passed unemployment and PPP loan forgiveness income exclusions and deductions.



Funding – Loans and grants


Summary of 501(c)(6) Eligibility in Pandemic Relief Package Expansion of PPP from the U.S. Chamber of Commerce
The final pandemic relief package restarts the Paycheck Protection Program (PPP) and expands PPP eligibility to include 501(c)(6)s. The language begins on page 2102 (in the PDF) and can be found here. The authority to make new PPP loans will terminate on March 31, 2021. We expect the pandemic relief bill to become law this week.
501(c)(6) organizations are eligible to receive a PPP loan provided:

  • They are not a professional sports league or organized for the purpose of promoting or participating in a political campaign (Note: this will not impact chambers of commerce or trade associations);
  • They do not employ more than 300 employees;
  • They do not receive more than 15% of their receipts from lobbying activities;
  • Lobbying activities do not compromise more than 15% of the organization’s total activities; and
  • The cost of the lobbying activities of the organization did not exceed $1,000,000 during the most recent tax year that ended prior to February 15, 2020.

If an organization fails any of these tests they are NOT eligible to receive a PPP loan.

Similar rules apply to Destination Marketing Organizations.

Lobbying activities are not defined in the section. The Small Business Administration may provide a definition or guidance. Congressional staff have used information available in the 990 tax form when discussing the impact of the 15% lobbying activities limitation.  Specifically, staff have compared the lobbying expenses reported on schedule C, Part III-B, Line 2 with the total expenses reported for the year (Page 1, line 18).  (Note that these lines may be different if you are using a 990 form vs. 990EZ.)

Absent further guidance, organizations may wish to analyze their most recent 990 to determine whether they may be eligible to apply for a PPP loan and may wish to proceed with their lender if they believe they do qualify.

The bill also expands allowable uses for PPP funds and simplifies the loan process.  We will be providing separate information on the other PPP changes.

Looking for COVID-19 resources in your area?

Businesses around Minnesota need assistance to withstand the challenges of COVID-19. Many cities and counties throughout the state have grant or loan programs available to businesses, so their local economies can compete and thrive. The Minnesota Chamber’s Grow Minnesota! Partnership has compiled a list of available funding at the city and county level.