Hospitality Minnesota: Member Update April 15

Member Update

April 15, 2020

What's Inside:

CALL TO ACTION: LOAN EXPANSION

Request for Input on Unemployment Eligibility

Clarification on Resorts and Campgrounds

Sales Tax Delay

Peacetime Emergency Clarification

Advice: Online Sales

In Case You Missed It

In the News

Thursday Webinars | National Industry Groups

CALL TO ACTION: LOAN EXPANSION

We are thankful that the Governor created a $30 million fund allowing certain businesses impacted by COVID-19 to obtain no-interest loans (up to 50% forgivable) through DEED in the amount of $2,000-35,000. However, this program needs to be expanded. Hotels, resorts and campgrounds are being told they do not qualify. This must change. We are pushing the governor, DEED and policymakers to expand this program. Contact the governor , your legislators and members of the House and Senate jobs committees and tell them to expand small business relief through DEED:

Federal relief is woefully inadequate for our industry: the PPP and EIDL loan mechanisms are problematic for hospitality businesses.
Expand eligibility for the DEED Small Business Emergency Loan program to include hotels, resorts and campgrounds that are economically harmed (hotel occupancy in America is 10% or less currently).
Increase the loan amounts and the state’s investment in this program. Minnesota has a current surplus of $964 million (as well as reserve funds) and received $1.87 billion from the federal government through the CARES Act. Some of these funds should be directed to investing in helping hospitality businesses survive this crisis.

Request for Input on Unemployment Eligibility

We’ve been receiving questions about what happens if you offer a former employee their job back and they reject the offer and opt to remain on unemployment. How does this impact their eligibility? This question is particularly important given the tension between generous benefits in Minnesota and the incentives under the CARES Act for employers to bring back employees as quickly as possible. We posed this question directly to the Department of Employment and Economic Development (“DEED”) yesterday. DEED said they want to hear from employers and asked that we direct members here .

Clarification on Resorts and Campgrounds

We have received confirmation from Governor Walz’ office on our interpretation of under what circumstances resorts and campgrounds can conduct business while the stay-at-home and business closure orders are in place. While currently set to end on May 4, we believe there is a high likelihood that could be extended. The Governor has also extended the Peacetime Emergency Declaration to May 13; this allows him to continue to use executive orders to manage the crisis.

Here is the State’s position on resorts and campgrounds:

Resorts and campgrounds providing housing/lodging to non-temporary guests (seasonal and long-term) and/or essential workers (truckers, etc.) are essential and any workers supporting those services are essential (i.e. electrical services, propane, site prep, etc.) and can operate within these parameters.
Recreational guests (including overnight or weekend lodging for guests engaged in fishing, hunting, or other recreation or entertainment purposes) are not allowed. This includes the trout opener this weekend and any other recreational activity prior to May 4. The Governor’s Office noted that they are hearing from a lot of county commissioners (especially up north) that don’t want recreational travelers coming from outside the community. They are especially concerned about bed capacity and health care resources.

A few considerations to note:

The stay-at-home and business closure orders have been put into place to safeguard public health and safety and manage the impact on vulnerable populations and critical front-line personnel.
If you are operating under the conditions outlined above, be prepared to be in contact with your local public health authority.
Violation is a misdemeanor offense and could result in fines. Enforcement would happen at the local level.

Individual inquiries on what businesses and workers are essential should be directed to: CriticalSectors@state.mn.us. We have been told that call volume has gone down considerably, and response times are short.

Sales Tax Delay

As we reported yesterday (and confirmed today in a call with the Revenue Department), hotels, resorts and campgrounds can request sales tax remittance relief on a case-by-case basis. If you are economically impacted by COVID-19, you are likely deemed to have “cause” according to the Department. The Department recommends that if this is the case, you may file by the required date, then when you are billed you may request abatement of penalties and interest and obtain a delay for some short-term relief. Today we reiterated our request that the Department extend the relief more broadly to lodging properties rather than putting them through the paces of making their request on a case-by-case basis. We are also enlisting assistance from legislators supportive of our request to advocate with the Department.

Peacetime Emergency Clarification

The Governor clarified today that the peacetime emergency extension through May 13 is separate from the Stay Home Order. The peacetime emergency order provides the Governor with certain tools to respond to the threat of COVID-19, such as providing economic relief to those impacted by the crisis and activating the National Guard to assist in relief efforts. The Stay Home Order, which lasts until May 4, directs Minnesotans to limit movements outside of their homes beyond essential needs.

Advice: Online Sales

The National Restaurant Association has some advice: It’s time to shift your sales strategy online. With the increase in social distancing forcing people to stay at home, the adoption of online ordering is on the rise. RestaurantDive reports that nearly 77% of customers check out a restaurant's website before deciding to order from it .

Having an ecommerce presence has never been more important to close the distance between you and customers. If you have an ecommerce presence, it might be time for a refresh. If you don’t, now’s the time to get online.

[Read More]