All eyes on business
In a week that brings the reopening of several more sectors in Vermont, Gov. Phil Scott and his team unveiled a $400 million relief package on Wednesday to help businesses survive the pandemic.
The package is funded through the federal CARES Act and includes two phases: $310 million for immediate relief, and a $90 million investment to help the economy. The overall approach focuses on financial, technical and housing aid, combined with marketing and consumer spending assistance. Officials hope it will help employers and small businesses plug financial gaps and begin to stabilize their operations.
“The storm is not over, but this is our first collective step towards repairing economic bridges and ensuring the survival of our business community,” said Lindsay Kurrle, the secretary of the Agency of Commerce and Community Development.
Once the Legislature approves this funding, Kurrle said she hopes the funding can be turned around in less than a month, but there is no firm time frame. The largest portion of this package is $250 million in financial assistance in direct grants and loans to businesses. Of that total, $150 million will be used to provide grants to the hardest-hit sectors of food and accommodation services, retail and agriculture. The $150 million in funds will help with fixed-cost expenses such as rent, mortgage payments, utilities, inventory and other essential costs.
Secretary Anson Tebbetts, of the Agency of Agriculture, Food and Markets, described the deep losses experienced by Vermont farmers, and said five dairy farms closed in the first week of May.
“Now is our time to support the backbone of Vermont, so it can heal and create a path forward that protects those who make a living off the land,” Tebbetts said.
Also from the $250 million, $80 million in grants and low- to no-interest loans will be available for other sectors; and $20 million in loans and grants are allocated for small businesses and nonprofits with less than $1 million in revenue and five or fewer employees. Other funding in the proposal supports landlords and tenants and will provide aid to homeless individuals.
On the cusp of summer, the state is also providing funds to businesses in the tourism sector and is planning a marketing effort to encourage Vermonters to explore the state and spend locally.
Today’s announcement was welcome news for the many businesses experiencing extreme hardships. Though some sectors have reopened, business owners everywhere face the impact of big losses in the last two months. This financial package — sure to see quick action by lawmakers — is only a small part of the solution. As the governor said, more help from the federal government will be crucial. But the state’s $400 million proposal is at least a step toward stemming the economic tide of the COVID-19 crisis. This effort, combined with efforts to buy local and help our neighbors, can aid the economy at a time when we badly need progress.
— Gareth Henderson
