The Register Citizen (Torrington, CT)
CT business groups call for $70M ‘lifeline’ in grant
More than a dozen organizations representing Connecticut businesses have called for the state to distribute $70 million it received through the federal CARES Act as a grant to businesses struggling during the pandemic.
“Across every sector, employers have operated under extreme uncertainty for more than seven months, finding new ways to operate while also keeping their employees and customers safe,” according to a letter sent to Gov. Ned Lamont and general assembly leaders Thursday.
“These efforts have been
particularly difficult for Connecticut’s many small businesses, who last year collectively employed more than 730,000 people in our state.”
The 13 organizations called for $70 million from the $1.4 billion the state received under the CARES Act to be set aside as “a new small business grant program.”
The groups said the money would be a “lifeline” to businesses struggling to remain open.
During his afternoon press briefing, Lamont announced there will be a grant program to assist small businesses.
“That’s going to be focused on small businesses, those with one to 20 employees, those that have taken a real hit in terms of COVID (and) revenue shortfall,” the governor said.
The program will receive $50 million in funding— short of the $70 million the state’s business associations are seeking.
Capping access to the program to businesses with 20 employees or less also falls short of the 50-employee limit the group had requested.
The group noted similar programs in Rhode Island and New Jersey both cap at 50 employees; and that “a cap that is any lower than 50 would leave far too many businesses out in the cold.”
Asked about the amount of money for the grants, Lamont said he had “every entity in the state” asking for additional support during the pandemic.
“Nobody more than the small business people understand the need to live within our means,” the governor said.
New Jersey officials have set up $100 million in funding from the act to aid businesses, the bulk of which will go to small businesses and restaurants which have been particularly hard hit during the pandemic, CBS New York reported.
And in Rhode Island, state officials have created a program called “Restore Rhode Island,” which offers grants of $1,500 to $15,000 to businesses impacted by the pandemic.
Last week, the state went to its long-awaited Phase 3 of reopening after the pandemic shuttered businesses, schools and other public venues in March.
Along with more than 4,500 deaths attributed to the disease in the state, the virus has also left a swath of permanent business closures in its wake.
The fallout includes local staples like Lenny & Joe’s Fish Tale, which announced it would close its New Haven location earlier this month.
In Bethel, the stresses of the pandemic drove O'Neil's Sandwich & Coffee Bar, a diner nestled in the town’s main drag, to close last month.
Several businesses have shuttered their doors in South Norwalk, which has enjoyed a booming shoreline scene in recent years.
The grant program, run by the Department of Economic and Community Development, will also be available to non-profits, with half of the money aimed at “distressed municipalities” Lamont said.