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MEMBER UPDATE
March 26, 2020
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Coronavirus Aid, Relief and Economic Security (CARES) Act passes the U.S. Senate. House expected to follow.
Last night the U.S. Senate passed a $2 trillion relief package to help workers, businesses and public health officials cope with the current crisis. The U.S. House is expected to pass the measure tomorrow. The bill includes much of the relief requested in Hospitality Minnesota’s letter to the
Minnesota delegation last week
. Here are the ten provisions mostly likely to help our industry and its workers financially:
- $350 Billion in Forgivable Loans. Businesses can obtain “loans” in an amount equal to 250% of their average monthly payroll (capped at $10 million). If the proceeds are used to pay rent, mortgage or payroll obligations, they can be forgiven. If used for other allowed purposes, they may be repaid over 12 months.
- Payroll Tax Deferral. Businesses may defer payroll tax obligations until January 2021. Half of the obligation for 2020 will need to be paid by Dec. 31, 2020 and the other half can be deferred until Dec. 31, 2021.
- Low-Interest Loans through U.S. Treasury. The bill makes available $500 billion to industries hit hard by the crisis that are having a hard time otherwise accessing capital
- Tax Credits for Employee Retention. Employers hit hard by closure orders and/or significant reduction in gross receipts will be eligible for a 50% tax credit against wages paid during the crisis.
- Coronavirus Relief Fund. $150 billion payment to states, local governments and tribes to address the crisis. Early indications are that Minnesota is likely to see at least $1.2 billion. We will be tracking opportunities for additional small business relief from the State and are in conversation with legislators and the Governor’s office.
- Additional Tax Relief. Businesses (and particularly hospitality businesses) will be able to amend previous tax filings related to Net Operating Losses (“NOL”) and/or Qualified Improvement Property (“QIP”), which is expected to help some businesses with cashflow.
- 401(k) Withdrawals: Penalties Waived. Individuals harmed by the crisis will be able to withdraw funds from their 401(k) or other retirement funds without penalty.
- Unemployment Benefits Expansion. The federal government will boost unemployment benefits paid out by states by $600 per month for recipients and extend the duration of benefits from 3 months to 4 months.
- Direct Payments to Individuals. Over the next two months, households will receive $1,200 per individual ($2,400 per couple) and $500 per child (benefits are capped at couples making less than $150,000 per year; individuals at $100,000).
- Housing Protections. The bill places a moratorium on residential foreclosures for 60 days and evictions for 90 days. It also allows for mortgage forbearance (payment deferral) for up to 12 months without additional interest, fees or penalty. Individuals should contact their lender directly.
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CARES Act summaries from our national association partners
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Join NRA for CARES Act discussion on Friday
The National Restaurant Association Public Affairs team is hosting a webinar at 2:00 pm Friday to discuss the CARES Act. You are asked to
read the summary
provided before joining the call.
Register now
.
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Governor Walz answers questions related to the Stay at Home Order
Governor Walz dedicated today’s briefing to answering questions that have come up following his announcement yesterday. The answer to today’s most asked question here, “do my employees need a permit or letter to be on the roads?” The answer is no. The Governor is asking for voluntary compliance and the state is working with law enforcement on an education, not enforcement, effort. You can find answers to other
Frequently Asked Questions here
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It’s Almost April 1—Do You Need to Negotiate Your Commercial Lease or Mortgage Payment?
Allied Member Stephen Cohen of
Stephen Cohen Law
sat down with us to talk about steps you can take for temporary lease or mortgage payment relief from your landlord or bank. Timestamps for specific topics can be found in the video description on YouTube. Make sure you watch to the end so you can hear Stephen’s encouraging closing words of advice.
[Watch here]
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City of Saint Paul proposes Saint Paul Bridge Fund for COVID-19 relief
The proposed Saint Paul Bridge Fund will aim to provide $3.25 million for emergency relief to small businesses and families. The proposal will go before the Saint Paul Housing and Redevelopment Authority for adoption at a special meeting on Wednesday, April 1, 2020.
Click here for more
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Duluth waiving late fees on City licenses, including liquor
Effective immediately, the city of Duluth is waiving any late fee(s) associated with license renewals and payments for a period of 30 days following their respective due date.
[
Read more
]
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Rochester takes relief steps
The City of Rochester has announced that they are suspending liquor license payments.
In addition, the City is teaming up with the Rochester Area Economic Development, Inc. (RAEDI) COVID-19 Emergency Economic Development to offer loans to provide assistance to small local businesses directly during the COVID-19 pandemic event as part of their COVID-19 Emergency Economic Development and Stability efforts.
Learn more.
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Resources for job seekers
CareerForce, Minnesota Department of Employment and Economic Development career resource, has a variety of tools for workers, including links to businesses that are hiring now.
Learn more.
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Unemployment Insurance: Shared Work program is an alternative to layoff
Submitting an application with a list of employees that will work reduced hours during a temporary shutdown will ensure that employees are paid unemployment benefits to offset part of their reduced wages.
Learn more
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Sign up to receive daily updates from ARVC
The National Association of RV Parks and Campgrounds is tracking the impact on parks and campgrounds nationwide.
Sign up for updates.
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Our Member Updates are generally sent to members only. In the interest of public health and the health of our industry, we encourage you to share this update widely. Additional resources can be found on our
website
and through our social media posts on
Facebook
and
Twitter
.
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Sincerely,
Liz Rammer
President and CEO
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