Member Update
April 8, 2020
What's Inside:
Stay-at-Home Extended
Alcohol To-Go Stalled
JOIN US! Peer Conference Calls
Watch Now
Stay-at-Home Extended
Today the Governor  extended  his “Stay-at-Home” order through May 4 and moves the Executive Order 20-04 limiting restaurants and other business from May 1 to May 4. This puts it in alignment with Stay-at-Home and the previously announced school closure.  
 
Earlier today in a phone call with the Governor’s Office, Hospitality Minnesota communicated that: 

  • The state needs to provide more guidance to seasonal businesses on the viability of their season and the extent of their operations, given these businesses typically open on May 1 and many of them serve as the primary “residence” to individuals or other essential activities. These businesses are trying to make difficult business decisions now and need timely information. 
  • The State should immediately expand the small business emergency loan program through DEED to apply to resorts, campgrounds and hotels. The State should increase its investment in this fund and consider raising the maximum loan value above $35,000. 
  • Federal relief through the CARES Act (including the Paycheck Protection Program) provides some limited relief but is no savior to small hospitality businesses, especially if they are unable to bring employees back swiftly as is incentivized under the bill. The State needs to act immediately to provide real relief that can help our businesses survive. 
  • While delays in the payment of certain obligations such as sales, property and other taxes or regulatory costs are welcome and may help with short-term cash flow, kicking the can down the road will not be enough to save these businesses. Without an infusion of revenue they will not be in any better position to pay these obligations in a month or two than they are now. The State should consider a combination of waiving or forgiving these obligations and direct grant relief to help hospitality businesses stay in business. 
  
TAKE ACTION : Contact  the Governor and reiterate what we’ve outlined above. Let him know we need: 

  • immediate relief in the form of tax forgiveness/abatement 
  • direct grant payments to offset lost revenue 
  • expansion of the low-interest (and partially forgivable) loan program through DEED for all our hospitality businesses (including resorts, campgrounds and hotels)
 
This industry generates over $1.3 billion in sales per month under normal conditions, but most of this revenue is currently lost. These conditions threaten the existence of small hospitality businesses. 
  
In addition, you can contact the individual members of the Taxes and Jobs Committees here: 

Alcohol To-Go Stalled
It is becoming apparent with each day that goes by that the Governor is unlikely to unilaterally allow temporary alcohol to-go by executive order, as other states have done. The Governor is deferring to action by the Legislature, which is scheduled to reconvene on April 14 and is currently looking at a variety of relief packages.   
  
TAKE ACTION:  Contact the chairs and members of the Senate and House Commerce Committees and ask them to act: 

JOIN US! Peer Conference Calls
We know that for many of you, the most important resource you have for your business is each other. Join other owner operators from your sector for an online conversation. After a brief update, we’ll pose a few questions for discussion – for these, we’ll focus on current conditions and how people are navigating through it. In addition to connecting with others facing similar challenges, we’ll learn more about what resources are needed now, so we can continue to advocate for your interests. 
 
  • Resorts and Campgrounds: Friday, April 10, 11 am – 12 pm Register
  • Lodging: Monday, April 13, 11 am – 12 pm Register
  • Restaurants: Tuesday, April 14, 11 am – 12 pm Register
  • Allieds: Wednesday, April 15, 11 am – 12 pm Register
 
Note: As the use of Zoom becomes more widespread, so does the likelihood of tricksters logging into any Zoom meeting they can find in order to cause a disturbance. Because of that, our Zoom calls require registration in advance, and a password when logging in. The password will be included in the confirmation email you receive when registering. Contact Emily emily@hospitalitymn.com if you need assistance logging into your call.
Watch Now
We’ve produced several great webinars and conversations during the past week. Take some time to catch up on the advice from these experts. Please send any questions or comments about webinars to Emily .
 
Webinars: 

  • Create Your Cash Flow to Ride Out the Pandemic (April 3) 
  • David Scott Peters joined us on Friday, April 3, 2020, to discuss creating a 12-week cash flow budget to help guide your business decisions in the context of coronavirus. The examples in the video are restaurant-based but hotels, campgrounds, resorts, and all hospitality businesses can use this information to create a 12-week cash flow budget. 


  • Understanding the CARES Act (April 6)
  • Hospitality Minnesota Allied Members Boyum Barenscheer discuss the CARES Act. Boyum Barencheer’s Nick Swedburg, CPA, QuickBooks Advanced ProAdvisor, and Chris Wittich, CPA, MBT, will discuss Practical Advice and SBA Loans, Unemployment, and Income Tax Provisions, as well as take your questions. This webinar will help prepare you to apply for EIDL and PPP loans. 

Conversation: 

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 , LinkedIn  and  Twitter .