COVID-19 Funding – Loans and grants

 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.

LEARN MORE

Funding – Loans and grants

• U.S. Small Business Administration (SBA) guidance for employers – Links to information on small business products and loans, guidance on access to capital and the local assistance directory. 
• U.S. Small Business Administration disaster loan application – Minnesota businesses now eligible as of Saturday, March 21.
  • Forms to Fill Out FIRST. Here's a list of documents you'll need to provide to complete the application: 
  • SBA Form 5 or SBA Form 5C for sole proprietorships – SBA loan application 
  • IRS Form 4506T – Tax Information Authorization for the applicant, principals and affiliates.
  • Complete copies of the most recent Federal Income Tax Return. 
  • SBA Form 2202 – Schedule of Liabilities.
  • SBA Form 413 – Personal Financial Statement.
  • SBA Form 1368 – Monthly sales figures 
• SBA Guide to Economic Injury Disaster Loans – download forms to apply, and more.
  • Have questions about these loans, please watch this video to answer some FAQs.
• Congressional summary of CARES Act for Small Businesses
• Coronavirus emergency loans small business guide and checklist from the U.S. Chamber of Commerce
• SBA Economic Injury Disaster Loan Program (EIDL) guide from the U.S. Chamber of Commerce
• Guide to the Employee Retention Tax Credit for COVID-19 impacted employers from the U.S. Chamber of Commerce
• How the U.S. Treasury Department is taking action on COVID-19
• Tax Savings Opportunities from the CARES Act by CliftonLarsonAllen
• DEED guide for small businesses on how to navigate state and federal COVID-19 assistance
• Paycheck Protection Program (PPP) – SBA loan that helps businesses keep their workforce employed during the Coronavirus (COVID-19) crisis.
  • FAQ from U.S. Department of Treasury Paycheck Protection Program
  • Guide to PPP Loan Forgiveness from the U.S Chamber of Commerce
  • PPP Loan Forgiveness: A Step-By-Step Explainer video from the U.S. Chamber of Commerce
• COVID-19 Federal Rural Resource Guide from the U.S. Department of Agriculture
• Guide to the Main Street Lending Program from the U.S. Chamber of Commerce
• Federal Reserve Board expands Main Street Lending Program: Allows more small and medium-sized businesses to be able to receive support
• December 21 COVID-19 federal relief bill small business summary from the Small Business Committee
• Guide to Small Business COVID-19 Emergency Loans - What small businesses need to know about the new pandemic relief package – Changes to PPP and more from the U.S. Chamber of Commerce
• What does the federal relief package mean for Minnesota unemployment insurance - FAQ from DEED
• How to Get Your PPP Loan Forgiven from the U.S. Chamber of Commerce
• PPP First Draw Loans for first time program participants from the Small Business Administration
• PPP Second Draw Loans beginning January 13, 2021 for certain businesses who have previously received a PPP loan from the Small Business Association
• COVID-19 Economic Injury Disaster Loans from the Small Business Administration. This loan provides economic relief to small businesses and nonprofit organizations that are currently experiencing a temporary loss of revenue.
• Shuttered Venue Operators Grant - Emergency assistance throught the SBA for eligible venues affected by the COVID pandemic. Applications open Thursday, April 8, 2021.
• What You Need to Know About Restaurant Revitalization Fund Grants from the U.S Chamber of Commerce

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.