Bemidji Chamber Urges State to Forgive Taxes on PPP Loans

PPP loans were offered to protect businesses during shutdowns related to COVID-19, but with tax season soon approaching, the state is looking to collect on those loans. Small businesses say this defeats the purpose of the loan, and the Bemidji Area Chamber of Commerce is asking members to contact their state legislators and tell them to forgive taxes on those loans.

Paycheck Protection Program loans, or PPP loans, were offered across the state twice during the pandemic as a part of the federal CARES Act. The PPP loans were necessary for a business like MJB Home Center in Bemidji to stay afloat in an uncertain time.

Because of the PPP loans, MJB Home Center co-owner David Smith did not have to lay off any of his employees over last year. The federal ruling is to not tax the loans, and unless Minnesota conforms to the federal law, they will be taxed in the state.

The Bemidji Area Chamber of Commerce, along with other chambers across the state, have asked their members to take action by contacting state legislators. They are hoping for action as soon as possible from the state before final tax payments are due April 15.