Payments out to local businesses affected by COVID-19 closures

Fifteen Rock County businesses shared $250,000 of coronavirus relief grants awarded Friday.
The grants were the result of a special state $216 million coronavirus recovery legislation passed in December.
Commissioners outlined a targeted distribution approach in January and asked the 21 businesses most impacted in Rock County to make application.
The county identified businesses closed during the governor’s month-long 2020 mandate to prevent the public spread of COVID-19.
All 21 businesses, primarily restaurants, event and fitness centers, made application, and each met in person to discuss losses with a county committee charged by the commissioners to distribute the funds.
Payments distributed Friday ranged from $1,843 to $64,993.
Business owners indicated they suffered a combined $432,500 in lost revenue due to the mandate, an amount well over the $250,000 the county received.
County Administrator Kyle Oldre said all applications would receive 58 percent of their requests, according to the distribution plan approved by commissioners at their Feb. 2 meeting.
“We discussed different methods of distribution and it seemed like across-the-board distribution was the most equitable when all was said and done,” Oldre said.
Disbursements, however, were made to businesses that passed state lien searches and businesses that had not already received automatic relief payments directly from the state.
This changed the percentage each business received.
The distribution formula increased to 78 percent because six of the local applicants did receive state payments, and the state check amounts covered the percentage of loss indicated in their county applications.
These applicants were removed from the local relief list.
Those businesses whose total losses were not covered by the state were adjusted by what they did receive, and the county committee granted relief funds to cover the percentage loss over the state aid amount.
“One applicant came forward and said they did receive a check,” Oldre said. “There was some confusion from them as to whether or not they would receive state aid.”
The state automatically calculated lost revenues to businesses by comparing taxable gross receipts from retail sales in the second and third quarters of 2019 to the second and third quarters of 2020. If the losses were 30 percent or greater, the business would automatically receive a state payment.
State payments ranged from $10,000 to $45,000 based on the number of employees the business employed, which ranged from one employee to more than 300 employees.
Oldre said the majority of local business owners interviewed had losses of 27-28 percent, which fell under the state’s automatic 30-percent loss payment criteria.
Some businesses had ownership changes, and the state did not recognize revenue reports of the previous owners.
Businesses not meeting the state’s automatic payment threshold were what the local committee sought.
At first, state officials were not releasing the names of businesses that automatically received state funds.
Local officials relied on business owners to indicate on the county application whether or not they received state funds. The county committee did not take into account if businesses received any payments from the Payment Protection Program.
The state revenue department later allowed counties to submit business names to verify any automatic payments.
“The state program ended up being a lot better than we thought it was,” said county attorney Jeff Haubrich, who also served on the distribution committee.
Rock County businesses receiving emergency relief funds (rounded to the nearest dollar) include:
•Cozy Rest Motel, $7,799;
•Dang Fine Dine, $21,664;
•Fraternal Order of Eagles Aerie 3403, $7,669;
•Grand Prairie Events LLC, $64,993;
•Green Lantern Bar & Grill S & L, $21,664;
•Hidden Hills Cafe, $25,694;
•Howling Dog Saloon, $11,981;
•Kenneth Bar, $7,799;
•Luverne Hotel Partners LLC, $21,664;
•Luverne Pizza Ranch Inc., $17,332;
•Luverne Power Fitness, $1,843;
•Magnolia Cafe, $4,333;
•Spring Brooke LLC, $21,664;
•Up the Dam Creek LLC, $2,807;
•Wildflowers Coffee Boutique, $11,092.
Friday’s distribution was the second COVID-19 relief package that the county distributed.
Rock County distributed $740,000 to businesses and nonprofit organizations through grant applications up to $5,000.
 
BMAT receives $15,000 in state COVID relief
Blue Mound Area Theater was among 73 movie theater owners and 15 convention centers that shared in a $14 million appropriation for movie theaters and convention centers in Minnesota impacted by COVID-19.
The Minnesota Department of Employment and Economic Development awarded the Blue Mound Area Theater $15,000.
The DEED grants were part of the $216 million COVID-19 recovery package passed in December.